When marginal revenue product of an input is less than its price, the producers should use less of the input.

Name: When marginal revenue product of an input is less than its price, the producers should use less of the input.
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Quizplus · Accepted Answer

When the marginal revenue product (MRP) of an input is less than its price, it means that the additional revenue generated by using one more unit of the input is less than the cost of using that unit. Therefore, to maximize profit, producers should reduce the use of that input.

When Marginal Revenue Product of an Input Is Less Than