With a Linear Production Function in Labor Only,which of the Following

question 46

Multiple Choice

With a linear production function in labor only,which of the following must be true?

• A) The representative household works as much as possible.
• B) The representative firm makes large profits.
• C) The real wage equals total factor productivity.
• D) The marginal product of labor exceeds the real wage.

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Definitions:

Ecological Perspective

An approach focusing on how human behavior and interactions are shaped by the broader ecosystem, including social and physical environments.

Community Psychology

A branch of psychology that studies the relationships of individuals within their communities and the wider society, aiming to improve quality of life.

Ecological Perspective

A viewpoint that emphasizes understanding individuals within their physical, social, and cultural environments and how these environments impact behavior and development.

Environments

Describes the surroundings or conditions in which a person, plant, or animal lives or operates, encompassing both natural and built settings.