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.
Correct Answer:
Verified
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Q81: Scenario 14.1
A worker in Firm A earns
Q82: Scenario 14.1
A worker in Firm A earns
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