Which statement is true?

Question

Quizplus · Accepted Answer

C is incorrect because the firm will hire workers until the wage rate equals the Marginal Revenue Product (MRP) of the last worker hired, not the Marginal Physical Product (MPP). A is incorrect because productivity is defined as output per unit of input, not the other way around. B is incorrect because the MRP curve for a perfect competitor is perfectly elastic, not steeper, compared to an imperfect competitor due to the perfect competitor's inability to influence market prices. D is correct because, historically, the Chinese economy has relied more on labor-intensive methods and less on capital-intensive methods compared to the U.S. economy, reflecting differences in resource availability and economic development stages.

Which Statement Is True