Which of the following is true of marginal revenue product (MRP) and marginal product (MP)?
a. MRP = MP price, whether the firm is a price searcher or not.
b. MRP = MP price only if the firm is a price searcher.
c. MRP = MP price only if the firm sells in a perfectly competitive market.
d. MRP = MP marginal cost only if the firm is a price searcher.
e. MRP = MP/price only if the firm is a price taker.
QUESTION 2Dumping raw sewage into Boston Harbor is an example of
a. a negative externality
b. a positive externality
c. a private cost
d. a sunk cost
e. an inverse cost
QUESTION 3The marginal revenue product of labor equals
a. MP/wage
b. change in total revenue/change in units of labor
c. change in total revenue times the change in units of labor
d. P/MP
e. MP wage
QUESTION 4Most water pollution in the United States comes from manufacturing sites.
a. True
b. False
QUESTION 5Marginal revenue product is defined as
a. the total revenue generated by inputs
b. the additional output produced by one additional unit of a resource, other things constant
c. the marginal revenue from each unit of output
d. the total revenue divided by the number of resources employed
e. the additional revenue generated by one additional unit of a resource, other things constant
QUESTION 6Some U.S. cities still dump raw sewage directly into rivers or oceans.
a. True
b. False
Quick Reply
