When Market Wages Increase in a Perfectly Competitive Market, Then

question 290

Multiple Choice

When market wages increase in a perfectly competitive market, then

• A) the marginal factor cost increases.
• B) the marginal product increases.
• C) the marginal factor cost decreases.
• D) the marginal product decreases.

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Definitions:

Liquidating Dividend

A type of dividend paid by a company to its shareholders from its capital rather than its earnings, typically during the partial or full liquidation of the company.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.

NPV Projects

Projects evaluated based on Net Present Value, a method to assess the profitability of investments by discounting future cash flows.