Asked by KALLA RAJU SRAVAN MS on Jun 04, 2024
Verified
The marginal revenue product schedule is:
A) the same whether the firm is selling in a purely competitive or imperfectly competitive market.
B) the firm's resource demand schedule.
C) the firm's resource supply schedule.
D) upsloping.
Resource Demand Schedule
A table or graph that shows the quantity of a resource demanded at various price levels, illustrating how demand changes with price.
Purely Competitive Market
A market structure characterized by many buyers and sellers, where no single entity has enough power to influence the market price of goods or services.
- Analyze the relationship between MRP and the hiring decisions of firms.
- Understand the impact of market structures (pure competition versus imperfect competition) on resource demand and labor hiring.
Verified Answer
CM
Ceaser MenchacaJun 10, 2024
Final Answer :
B
Explanation :
The marginal revenue product (MRP) schedule represents the additional revenue a firm earns from employing one more unit of a resource, making it the firm's resource demand schedule. It reflects how much a firm is willing to pay for additional units of a resource, based on the extra revenue those units are expected to generate.
Learning Objectives
- Analyze the relationship between MRP and the hiring decisions of firms.
- Understand the impact of market structures (pure competition versus imperfect competition) on resource demand and labor hiring.