Answer the following statements true (T) or false (F)

1. Derived demand for a resource stems from the demand for the good or service it produces.
2. The MRP is the additional revenue obtained by producing one more unit of output.
3. In perfect product competition, the output price is fixed to the firm.
4. MRP declines because MP declines.
5. Firms hire workers up to the point where MRP = the wage rate.


1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE

Economics

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