Econ - cmon..... statements, following, midnight, compare, correct

aurific

1st of all how the hel are u supposed to pass this exam if they keep you at work till midnight. with that being said i think im fried coz i cant figure this one out.

can someone please dumb this down:

Are the following two statements about the marginal revenue product (MRP) of a factor of production correct?

Statement 1: In a price taker market, the MRP of an input is the marginal product of the input multiplied by the price of the output it generates.

Statement 2: If we compare any two productive inputs, the one with the higher MRP will earn greater economic rent.

Statement 1 Statement 2


A) Correct Incorrect


B) Incorrect Correct


C) Correct Correct


Gracias!!