Use the following to answer question(s): Wage Determination in Perfect Competition

-(Exhibit: Wage Determination in Perfect Competition) A decrease in the marginal product of labor will result in:
A) a higher wage.
B) more labor being hired.
C) an increase in the MRP of labor.
D) a lower wage.

Question

Use the following to answer question(s): Wage Determination in Perfect Competition
 
-(Exhibit: Wage Determination in Perfect Competition) A decrease in the marginal product of labor will result in:
A) a higher wage. 
B) more labor being hired. 
C) an increase in the MRP of labor. 
D) a lower wage.

Quizplus · Accepted Answer

A decrease in the marginal product of labor means that each additional worker hired is contributing less to total output. This reduces the firm's demand for labor, causing a shift in the labor demand curve to the left, leading to a lower equilibrium wage.

Use the Following to Answer Question(s): Wage Determination in Perfect