When the labor market is not perfectly competitive, labor will be hired up to the point where the _____ of labor equals the _____.
A. marginal revenue product; marginal revenue
B. marginal product; market wage
C. marginal revenue product; marginal factor cost of labor
D. marginal product; marginal factor cost of labor
The relationship between the marginal cost and marginal revenue is significant in the study of marginal analysis. It is used to assist people in the proper allocation of scarce resources to maximize benefits for the output produced.
Answer and Explanation: 1
The correct answer is Option C - marginal revenue product; marginal factor cost of labor .
- When the product market is not perfectly competitive,...
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fromChapter 3 / Lesson 47
Discover what is marginal analysis and the marginal analysis definition. Explore marginal reasoning, marginal cost analysis, and the marginal analysis formula.