Suppose a Firm Has One Variable Input, Labor

question 105

Multiple Choice

Suppose a firm has one variable input, labor. Why is the MRP_L curve for a competitive firm above the MRP_L curve for a monopolist?

• A) Without competition from other firms, monopolies are less efficient and the marginal product of labor is lower at each level of output.
• B) Although the marginal product of labor may be the same under both market structures, the marginal revenue of the monopoly declines with output.
• C) Monopolists have less incentive to invest in worker training and other methods for improving labor productivity, so the marginal product of labor is lower in the monopoly case.
• D) none of the above

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Definitions:

Genotype AAbbCc

The genetic makeup of an organism consisting of two alleles for one trait, with one being dominant A, aa indicating recessive, and Bb Cc being heterozygous.

Color Scale

A range or sequence of colors used to represent quantitative values or to show a gradual transformation.

Recessive Alleles

Recessive alleles are a type of gene that is masked by the presence of a dominant allele and only expresses its phenotype when paired with an identical allele.

Two-trait Testcross

A genetic cross involving an individual exhibiting two traits with another that is homozygous recessive for those two traits to analyze the inheritance patterns of the traits.