As the quantity of labor increases, value of marginal product for a perfectly competitive firm
A) decreases because the firm must lower its price to sell a larger quantity.
B) decreases because the marginal product of labor decreases.
C) decreases because marginal revenue decreases.
D) is constant because marginal revenue is constant.
B
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Producing a differentiated product occurs in which of the following industries?
A) oligopoly, monopolistic competition, and perfect competition B) monopolistic competition and oligopoly C) monopolistic competition only D) oligopoly only
Explain what happens to the short-run aggregate supply curve when output exceeds its potential
What will be an ideal response?
The cost of using capital is equal to the market rental price as long as:
A. a firm rents all of the capital used in its production process. B. a firm owns all of the capital used in its production process. C. the cost of capital is expensed in the year the capital is purchased. D. a well-functioning rental market for capital exists.
If the CPI declined from 400 in 1998 to 350 in 1999, by what percentage did the price level decline?
What will be an ideal response?