Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-If the labor market is perfectly competitive the wage rate will be less than the marginal revenue product of labor.

Question

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The Answer of Scenario 14.1
A worker in Firm A earns an income of $5,000 per month. He has been offered a job in Firm B where he will be paid a salary of $7,000 per month.
-If the labor market is perfectly competitive the wage rate will be less than the marginal revenue product of labor.

Scenario 14.1 A Worker in Firm a Earns an Income of $5,000