For a firm producing in a perfectly competitive product market,the marginal revenue product of labor eventually

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In a perfectly competitive product market, the firm is a price taker and the product price remains constant. As the firm hires more units of labor, at some point, the marginal product of labor begins to diminish. This leads to a decrease in the marginal revenue product of labor, as each additional unit of labor is adding less and less to the total output of the firm. Therefore, the correct choice is A, which states that the marginal revenue product of labor eventually falls due to diminishing marginal returns to labor.

For a Firm Producing in a Perfectly Competitive Product Market,the