In a market with perfect product competition, the MRP declines because

a. the price of output falls as output increases.
b. the MP declines with each worker hired.
c. both output price and the MP decline as output increases.
d. the marginal revenue of each additional unit of output declines.


b. the MP declines with each worker hired.

Economics

You might also like to view...

If it costs $6.00 to go to the movies and $25.00 to go to a hockey game, Tom is maximizing his utility between movies and hockey if his marginal utility of movies is 12 units and his marginal utility from hockey is 50

Indicate whether the statement is true or false

Economics

Federal subsidies to higher education benefit

a. only the student b. only universities c. both universities and students d. neither universities nor students

Economics

The aggregate supply curve reflects the relationship between the price level and

a. aggregate demand b. unemployment c. real GDP d. employment e. aggregate expenditure

Economics

Social Security contributions are part of

A. indirect taxes. B. reverse taxes. C. payroll taxes. D. excise taxes.

Economics