As More Labor Is Hired, the Marginal Revenue Product of a Competitive

question 2

Multiple Choice

As more labor is hired, the marginal revenue product of a competitive firm

• A)increases because total revenue increases.
• B)declines because marginal product of labor declines.
• C)does not change because marginal revenue is constant.
• D)declines because output price declines.
• E)declines because marginal revenue declines.

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Definitions:

Livestock

Domesticated animals raised in an agricultural setting to produce commodities such as food, fiber, and labor.

Warehouser's Lien

A legal right granted to warehouse operators to hold onto a customer's goods until payment has been made for warehouse services.

Stored Goods

Items that are kept in a warehouse or other storage location for future use, sale, or distribution.