Solved

The Figure Given Below Represents Equilibrium in the Labor Market

Question 77

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor
The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6 In the figure, D = MRP implies demand for labor = Marginal Revenue Product MFC represents Marginal Factor Cost curve S represents the supply curve of labor    -Which of the following statements brings out the relationship between the value of marginal product (VMP)  and the marginal revenue product (MRP) ? A) They are the same for a firm selling in a perfectly competitive market structure. B) They are the same for a firm purchasing inputs in a perfectly competitive market structure. C) VMP is greater than MRP when a firm is perfectly competitive in the product market. D) VMP is less than MRP when a firm is perfectly competitive in the product market. E) They are same when a firm is a monopolist.
-Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP) ?


A) They are the same for a firm selling in a perfectly competitive market structure.
B) They are the same for a firm purchasing inputs in a perfectly competitive market structure.
C) VMP is greater than MRP when a firm is perfectly competitive in the product market.
D) VMP is less than MRP when a firm is perfectly competitive in the product market.
E) They are same when a firm is a monopolist.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents