For a firm that is competitive in both product and factor markets, the value of the marginal revenue product of labor:
A) is constant and equal to the market wage.
B) increases, causing the labor supply curve to slope upward.
C) declines because the marginal product of labor diminishes as the number of workers rises.
D) declines because a competitive firm must lower product price in order to increase sales.
Correct Answer:
Verified
Q29: The major reason the market demand curve
Q41: The profit-maximizing firm should continue hiring additional
Q42: Which of the following would cause the
Q49: The demand for labor is a derived
Q55: When a firm evaluates the contribution of
Q56: The relationship between the wage rate and
Q57: If labor is the only variable input,
Q126: If there is an increase in demand
Q139: Lower wages will
A) decrease the demand for
Q145: Bob's Baubles,Inc.,sells its product for $3 each
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents