Wally's Wheat Farm sells its output and hires its labor in perfectly competitive markets.In the short run,Wally can vary only one input-labor.In short-run equilibrium,all of the following conditions,except one,will be satisfied.Which is the exception?
A) The marginal revenue product of labor equals the wage rate.
B) The marginal revenue product of labor would decrease if more labor is hired.
C) Marginal revenue equals the price of the firm's output.
D) The marginal product of labor would decrease if more labor is hired.
E) The firm's total revenue will decrease if more labor is hired.
Correct Answer:
Verified
Q80: The marginal revenue product (MRP)of labor is
Q81: A firm can maximize profit by hiring
Q82: The marginal revenue product of labor
A)increases as
Q83: One baker can bake 15 pies in
Q84: Tova is trying to get a bakery
Q86: One seamstress can sew 2 dresses per
Q87: Gerhardt is a bicycle mechanic,and he can
Q88: As applied to labor demand,the marginal approach
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents