Which of the following is true of marginal revenue product (MRP) and marginal product (MP) ?
A) MRP = MP price, whether the firm is a price searcher or not.
B) MRP = MP price only if the firm is a price searcher.
C) MRP = MP price only if the firm sells in a perfectly competitive market.
D) MRP = MP marginal cost only if the firm is a price searcher.
E) MRP = MP/price only if the firm is a price taker.
Correct Answer:
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