A competitive industry hires 1000 workers.The 1000th worker adds $500 a week to their employer's revenue.If a monopoly took over the industry,then the 1000th worker would likely

Question

Quizplus · Accepted Answer

In a monopoly, the marginal revenue product of labor is typically lower than in a competitive market because the monopolist faces a downward-sloping demand curve, leading to a lower price for additional output sold. Therefore, the 1000th worker would likely add less than $500 a week to their employer's revenue.

A Competitive Industry Hires 1000 Workers