When an individual's MRP is not measurable,his or her market wage is usually determined by

Question

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When an individual's MRP (Marginal Revenue Product) is not measurable, their market wage is usually determined by their opportunity wage. Opportunity wage refers to the wage that an individual could earn in their next best alternative job. This is because the individual's value in the labor market is primarily determined by the value of their output to the employer, and this is influenced by the value of the individual's output in alternative uses. The selling price of the output (Choice C) may be relevant in some cases, but it is not a determining factor in wage determination when MRP is not measurable. The individual's MPP (Marginal Physical Product) (Choice A) may also be an important factor in wage determination, but it alone cannot determine the market wage as it does not account for the price of the product produced.

When an Individual's MRP Is Not Measurable,his or Her Market