Suppose the Labor Market Is Perfectly Competitive, but the Output

question 33

Multiple Choice

Suppose the labor market is perfectly competitive, but the output market is not. When the labor market is in equilibrium, the wage rate will:

• A) be less than the marginal revenue product of labor.
• B) equal the marginal revenue product of labor.
• C) be greater than the marginal revenue product of labor.
• D) None of the above is necessarily correct.

---

Definitions:

Schizotypal Personality Disorder

A psychiatric syndrome featuring pronounced anxiety in social contexts, muddled thinking, paranoid tendencies, a sensation of being unreal, fleeting psychotic moments, and often distinctive beliefs.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification system for mental disorders developed by the American Psychiatric Association.

Schizophrenia Spectrum Disorders

A range of disorders characterized by symptoms such as delusions, hallucinations, disorganized speech, and cognitive impairment.

Personality Disorders

Mental health conditions characterized by patterns of thought, feeling, and behavior that are significantly different from what is considered normal, causing distress or impaired functioning.