All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A) an individual firm's demand for labor is its MRP curve.
B) under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price.
C) an increase in the market demand for a given product decreases the product's price.
D) the demand for labor is a derived demand.
Answer: C
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Indicate whether the statement is true or false
Based on the analysis of Alice Hanson Jones, what colonial region showed the most unequal distribution of wealth?
a. New England. b. Middle Colonies. c. South. d. Distribution was similar in all colonies.
In the simplest Keynesian expenditure model, which of the following is fixed to allow for easy evaluation of changes in demand due to real income?
a. the price level b. interest rates c. tastes and preferences d. future expectations
The excess burden of a tax is $5,000 and the tax revenue from this tax is $20,000. The total burden of this tax is
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