Economics Multiple Choice Question – 17 November 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Quang Nguyen Vinh on Pexels.com

A firm is operating in an imperfectly competitive market.

Why does the marginal revenue product of a factor of production employed by the firm fall as more of the factor is employed?

Select ONE answer:

  1. Its marginal physical product alone falls.
  2. Its marginal revenue alone falls.
  3. Its marginal physical product and its marginal revenue both fall.
  4. The supply price of the factor rises.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

%d bloggers like this: