1)If two inputs are complementary an increase in the price of one input will:
A) decrease the demand for the other input.
B) increase the demand for the other input.
C) increase the quantity demanded for the other input.
D) have no effect on the demand for the other input.

2)If the marginal revenue product (MRP) of labor is less than the wage rate:
A) the firm is making profits. C) more labor should be employed.
B) the firm is incurring losses. D) less labor should be employed.

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