To Answer the Question,refer to the Following Figure,showing the Marginal

question 65

Multiple Choice

To answer the question,refer to the following figure,showing the marginal revenue product (MRP) and the average revenue product (ARP) curves of a perfectly competitive firm hiring a single variable input,labor. If the wage is above $______,the firm will shut down and hire zero workers in the short run.

• A)$41
• B)$30
• C)$34
• D)$32

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Definitions:

Performance-Based Pay

A compensation system where employees are paid based on their performance or achievements in their role, rather than receiving a fixed salary.

Productivity

The efficiency with which goods or services are produced, often measured as output per unit of input, like labor or resources.

Detrimental Effects

Negative impacts or outcomes that result from a particular action or policy.

Progenitor

An ancestor or parent cell from which other cells or organisms develop.