If the marginal revenue product of land is less than its price, a firm should
A) use more land.
B) use less land.
C) try to increase the productivity of land.
D) increase the price it is willing to pay for land.

Question

Quizplus · Accepted Answer

If the marginal revenue product of land is less than its price, it means the firm is not generating enough revenue from the last unit of land to cover its cost, indicating the firm should use less land to increase efficiency and profitability.

If the Marginal Revenue Product of Land Is Less Than