Author Question: Which of the following statements brings out the relationship between the value of marginal product ... (Read 43 times)

formula1 · **on:** Jun 30, 2018

Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP)?
a. They are the same for a firm selling in a perfectly competitive market structure.
b. They are the same for a firm purchasing inputs in a perfectly competitive market structure.
c. VMP is greater than MRP when a firm is perfectly competitive in the product market.
d. VMP is less than MRP when a firm is perfectly competitive in the product market.
e. They are same when a firm is a monopolist.

Question 2

Sellers are more willing to supply a good or service for which the profit is low than to supply a good or service for which the profit is high.
a. True
b. False
Indicate whether the statement is true or false