In a Perfectly Competitive Labor Market, the Price of a Resource

question 42

True/False

In a perfectly competitive labor market, the price of a resource to a firm is the same as the firm's marginal factor cost.

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Definitions:

Chain-Style Business Operation

A type of franchise in which the franchise operates under the franchisor’s business name and is required to follow the franchisor’s standards and methods of business operation.

Franchise

A business model that allows individuals to own and operate a branch of a larger company using its name, trademarks, and products.

Standards and Methods

Established procedures and guidelines designed to achieve consistency, reliability, and quality in executing tasks or manufacturing products.

Legal Person

An individual or organization that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.