A-LevelEconomicsThe price system and the microeconomy9708/31 · May/June 2020 · Q171 Mark
A firm is operating in a perfectly competitive market.
- (a)Why does the marginal revenue product of a factor of production employed by the firm fall as more of the factor is employed? A Its average revenue falls. B Its marginal physical product falls. C Its marginal revenue falls. D The supply price of the factor rises.[1]
Mark scheme
Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.
- [1] B
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