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Alecxyia Valdez
on Nov 06, 2024

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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.
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Au Tieu Vy - K15 FUG CTNov 06, 2024
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