For a perfectly competitive firm, when the price of the product it sells rises, its MRP of labor curve __________, while its VMP of labor curve __________.
A) stays where it is; shifts to the right
B) shifts to the right; shifts to the right
C) shifts to the right; stays where it is
D) shifts to the left; shifts to the left
Correct Answer:
Verified
Q43: Value marginal product (VMP) equals
A)P x MPP.
B)P/MPP.
C)P
Q44: For a perfectly competitive firm,
A)VMP > MRP.
B)VMP
Q45: Applying the least-cost rule to two factors,
Q46: For a product price searcher (such as
Q47: Value marginal product (VMP) is
A)a measure of
Q49: Elasticity of demand for labor measures the
Q50: A measure of the value that one
Q51: For a perfectly competitive firm, a decrease
Q52: The firm's factor demand curve is the
A)MRP
Q53: The market demand curve for labor is
A)the
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