If a firm is selling in an imperfectly competitive product market, then
A)average product will be less than marginal product for any number of workers hired.
B)the marginal products of successive workers must be sold at lower prices.
C)the marginal products of successive workers can be sold at higher prices.
D)the marginal products of successive workers can be sold at a constant price.

Question

Quizplus · Accepted Answer

In an imperfectly competitive market, firms face a downward-sloping demand curve, meaning they must lower the price to sell additional units of output. This implies that the marginal products of successive workers, which contribute to these additional units of output, must be sold at lower prices.

If a Firm Is Selling in an Imperfectly Competitive Product