Marginal revenue product of labor equals marginal product times the wage only when the firm is a perfect competitor in the product market
a. True
b. False
B
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The interest rate that equates the present value of payments received from a debt instrument with its value today is the
A) simple interest rate. B) current yield. C) yield to maturity. D) real interest rate.
Many studies show that price and concentration ratios are
a. not related b. inversely related c. positively related d. constant e. both higher in perfectly competitive markets
When continued for several years, rapid growth in the money supply relative to the growth of real output will likely lead to an extended period of
a. low unemployment. b. high inflation. c. low nominal interest rates. d. high rates of real economic growth.
Suppose the government levies a corrective tax on firms that pollute in order to limit the quantity of pollution. Under this policy, does the demand curve for pollution rights determine the quantity of pollution, or does it determine the price of pollution?