Day: November 19, 2022

 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

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