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.

Question

Quizplus · Accepted Answer

The marginal revenue product schedule shows the additional revenue a firm earns from hiring an additional unit of a specific resource. It is typically the firm's resource demand schedule because it shows the price the firm is willing to pay for each unit of the resource. It is not the same for purely competitive or imperfectly competitive markets, as the price and demand for resources can vary depending on market conditions. The resource supply schedule shows how much of a resource is available at various prices, and is not directly related to the marginal revenue product schedule. The marginal revenue product schedule is typically upsloping, indicating that as the firm hires more units of a resource, the marginal revenue product (and therefore the firm's demand for the resource) increases.

The Marginal Revenue Product Schedule Is