For a firm selling its product in an imperfectly competitive market, the marginal revenue product of labor can be found by
A) adding marginal product to total product as one more unit of labor is employed.
B) adding marginal revenue to total product as one more unit of labor is employed.
C) multiplying marginal product by product price.
D) multiplying marginal product by marginal revenue.

Question

Quizplus · Accepted Answer

In an imperfectly competitive market, the marginal revenue product of labor is calculated by multiplying the marginal product of labor by the marginal revenue, not the product price, because the firm has some control over the price and marginal revenue is less than the price.

For a Firm Selling Its Product in an Imperfectly Competitive