For a perfectly competitive firm, the marginal revenue product is ...

[Alainaaa8]

For a perfectly competitive firm, the marginal revenue product is equal to the marginal product multiplied by the output price.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following is an example of inelastic demand?
 a. A 10 percent increase in the price of milk leads to a 20 percent decrease in the quantity demanded of milk.
  b. A 10 percent increase in the price of milk leads to a 10 percent decrease in the quantity demanded of milk.
  c. A 10 percent increase in the price of milk leads to a 5 percent decrease in the quantity demanded of milk.
  d. A 10 percent increase in the price of milk leads to a 10 percent increase in the quantity demanded of milk.
  e. A 10 percent increase in the price of milk leads to a 5 percent increase in the quantity demanded of milk.

[cici]

Answer to Question 1

True

Answer to Question 2

c