Asked by
Kamren Michal Gallas
on Nov 06, 2024
Verified
If the MRP of land is greater than its price, a firm should
A) use more land.
B) use less land.
C) try to increase the productivity of land.
D) decrease the price it is willing to pay for land.
MRP
Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a resource.
Productivity
A measure of the efficiency of production, often expressed as the ratio of output to input within a specific period.
- Master the idea of marginal revenue product (MRP) and examine its effects on the allocation of labor and land by corporations.
Verified Answer
AP
Learning Objectives
- Master the idea of marginal revenue product (MRP) and examine its effects on the allocation of labor and land by corporations.