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According to the Principle of Marginal Productivity, If

Question 5

Multiple Choice

According to the principle of marginal productivity, if


A) the product price is less than marginal revenue product (MRP) , the firm is using too little of the input.
B) the price of an input rises, the quantity demanded of the input will increase.
C) MRP is greater than product price, the firm should reduce the use of the input.
D) price of the input equals MRP, the firm is maximizing profit.

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