For a Firm That Is Competitive in Both Product and Factor

question 93

Multiple Choice

For a firm that is competitive in both product and factor markets,the value of the marginal product of labor:

• A) is constant and equal to the market wage.
• B) increases, causing the labor supply curve to slope upward.
• C) declines because the marginal product of labor diminishes as the number of workers rises.
• D) declines because a competitive firm must lower product price in order to increase sales.

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Definitions:

Consent

The agreement between participants to engage in a specific activity, given freely and willingly, and can be withdrawn at any time.

Extrafamilial Child Sexual Abuse

Child sexual abuse by someone unrelated to the child.

Intrafamilial

Relating to or occurring within a family or by members of a family.

Acquaintance Rape

A sexual assault committed by someone known to the victim, such as a friend or colleague.