Asked by
Alecxyia Valdez
on Nov 06, 2024Verified
If the marginal revenue product of land is less than its price, a firm should
A) use more land.
B) use less land.
C) try to increase the productivity of land.
D) increase the price it is willing to pay for land.
Marginal Revenue Product
The additional revenue a firm generates from employing one more unit of input, such as labor or capital.
Productivity
An evaluation of how effectively a person, machine, factory, or system transforms inputs into valuable outputs.
- Grasp the notion of marginal revenue product (MRP) and how it affects companies' choices related to labor and land utilization.
Verified Answer
AT
Learning Objectives
- Grasp the notion of marginal revenue product (MRP) and how it affects companies' choices related to labor and land utilization.