The following table shows output per hour produced by the different units of labor. Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.
The structure of the product market as described by Table 14.1 is:
A)monopolistic.
B)oligopolistic.
C)perfectly competitive.
D)monopsonistic.
E)monopolistically competitive.

Question

The following table shows output per hour produced by the different units of labor. Table 14.1
 The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.
The structure of the product market as described by Table 14.1 is:
A)monopolistic. 
B)oligopolistic. 
C)perfectly competitive. 
D)monopsonistic. 
E)monopolistically competitive.

Quizplus · Accepted Answer

The table shows that each unit of labor produces the same output per hour, indicating that there are many firms in the market producing an identical product, which is a characteristic of a perfectly competitive market. Furthermore, the marginal revenue product equation assumes a perfectly competitive market structure.

The Following Table Shows Output Per Hour Produced by the Different