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# The value of marginal product (VMP) is a.equal to the product price multiplied by the mar

The value of marginal product (VMP) is

a.equal to the product price multiplied by the marginal physical product of the factor.

b.equal to marginal revenue product for a product price taker.

c.the firm&#39;s factor demand curve if the firm is a product price taker.

d.a measure of the value that each factor unit adds to the firm&#39;s product.

e.all of the above

83.A perfectly competitive firm will continue to hire more factor units as long as

a.MRP > MFC.

b.VMP > MFC.

c.MRP > VMP.

d.VMP = MFC.

e.a and b

84.A perfectly competitive firm will maximize its profits by hiring factors up to the point at which

a.MRP > MFC.

b.VMP > MFC.

c.MRP = MFC.

d.VMP = MFC.

e.c and d

85.If a perfectly competitive firm is a factor price taker, at the profit- maximizing factor quantity

a.VMP = MRP.

b.MRP = MFC.

c.MFC = factor price.

d.both a and b

e.all of the above

86.A price searcher (monopolist, oligopolist) will hire more factor units as long as

a.MRP > MFC.

b.MRP > VMP.

c.MRP = MFC.

d.VMP = MFC.

e.c and d

87.A price searcher (monopolist, oligopolist, etc.) will maximize its profits by hiring factors up to the point at which

a.MRP > MFC.

b.VMP > MFC.

c.MRP = MFC.

d.VMP = MFC.

e.c and d

88.If a monopolist is a factor price taker, at the profit-maximizing factor quantity

a.VMP > MRP.

b.MRP = MFC.

c.MFC = factor price.

d.b and c

e.all of the above

89.To minimize cost, a firm should hire two factors, X and Y, until

a.MPPX/PX = MPPY/PY.

b.MPPX = MPPY.

c.MPPX x PX = MPPY x PY.

d.MRPX/PX = MRPY/PY.

e.MRPX x PX = MRPY x PY.

90.If MPPX/PX > MPPY/PY, the firm should buy

a.more of factor X and less of factor Y.

b.less of factor X and more of factor Y.

c.more of factor Y and the same amount of factor X.

d.less of factor X and factor Y.

e.more of factor X and factor Y.

91.If MPPX/PX Y/PY, the firm should buy

a.more of factor X and less of factor Y.

b.less of factor X and more of factor Y.

c.more of factor Y and the same amount of factor X.

d.less of factor X and factor Y.

e.more of factor X and factor Y.

92.The factor demand curve shifts leftward as a result of

a.an increase in the price of the product the factor helps to produce.

b.an increase in the marginal physical product of the factor.

c.a decrease in the price of the product the factor helps to produce.

d.a and b

e.b and c

93.The elasticity of demand for a factor is lower,

a.the higher the elasticity of demand for the product the factor helps to produce.

b.the higher the factor cost-total cost ratio.

c.the fewer substitutes for the factor.

d.a and c

e.all of the above

94.According to the marginal productivity theory, a perfectly competitive firm that is a factor price taker pays its factors their

a.MRP.

b.VMP.

c.MPP.

d.a and b

e.all of the above

Dec 09 2019 View more View Less

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