For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal:
A. revenue equals marginal cost.
B. physical product of labor equals the product price.
C. revenue equals the product price.
D. physical product of labor equals the wage rate.
Competitive Labor Market:
In a competitive labor market, there are many "buyers" and "sellers" of a type of labor, and all labor is identical. Because of this, no single buyer or seller has any direct influence in the market.
Answer and Explanation: 1
For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal (D) physical...
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fromChapter 3 / Lesson 49
Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.