Assuming labor is the only variable factor of production, production of a good will not occur
A) as long as the marginal revenue product of labor is positive.
B) if society values a good less than it costs firms to hire the workers to produce the good.
C) as long as the productʹs price is less than the marginal revenue product of labor.
D) if the marginal cost of a unit of output equals the marginal revenue product of labor.

Question

Quizplus · Accepted Answer

If society values a good less than it costs firms to hire the workers to produce the good, firms will not produce the good because it would not be profitable. This is because the revenue generated from selling the good would not cover the cost of labor, leading to a loss.

Assuming Labor Is the Only Variable Factor of Production, Production