Asked by Elvia Padilla on Jun 12, 2024
Verified
A firm will use land up to the point at which the MRP of land is equal to the price of land.
MRP
Marginal Revenue Product, which refers to the additional revenue generated from employing one more unit of a resource.
- Comprehend the principle of marginal revenue product (MRP) and its influence on decisions regarding the use of labor and land by businesses.
Verified Answer
DD
Danielle DucheineJun 18, 2024
Final Answer :
True
Explanation :
A firm will continue to use land until the marginal revenue product (MRP) of land equals its price, as this is the point where the firm maximizes its profit from using land.
Learning Objectives
- Comprehend the principle of marginal revenue product (MRP) and its influence on decisions regarding the use of labor and land by businesses.