If a Firm Is a Price Taker in the Input

question 26

Multiple Choice

If a firm is a price taker in the input market but not in the output market,its marginal value product of labor

• A) exceeds the marginal revenue product of labor.
• B) equals its marginal revenue product of labor.
• C) is less than the marginal revenue product of labor.
• D) equals the marginal physical product of labor.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, indicating the total benefits received by all parties involved in transactions.

Ugandan

Relating to Uganda or its people, culture, and geography.

Coffee

A drink produced from brewing the roasted seeds of the Coffea plant's berries, known as coffee beans.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.