Asked by Tanya Woods on Apr 24, 2024
Verified
A firm's demand schedule for a resource is the firm's marginal product schedule for the resource.
Demand Schedule
A table or graph that shows the quantity of a good or service that consumers wish to buy at each price level.
Marginal Product
The additional output that is generated by employing one more unit of a specific factor of production, keeping other inputs constant.
- Comprehend the role of the marginal revenue product curve in determining input demand.
Verified Answer
MR
Matthew Rodriguez6 days ago
Final Answer :
False
Explanation :
A firm's demand schedule for a resource reflects how much of that resource the firm is willing to hire at different prices, based on the marginal revenue product (MRP) of the resource, not just its marginal product (MP). The MRP also considers the additional revenue generated by employing one more unit of the resource, which depends on both the MP and the marginal revenue (MR) from selling the extra output produced by that resource.
Learning Objectives
- Comprehend the role of the marginal revenue product curve in determining input demand.