If a Profit-Maximizing Firm Is a Price Taker in Both

question 27

Multiple Choice

If a profit-maximizing firm is a price taker in both the input and output markets,its marginal revenue product of labor is given by

• A)the price of its output times labor's marginal physical productivity.
• B)the marginal value product of labor.
• C)the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital.
• D)all of the above.

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Definitions:

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the understanding and use of language.

Long-Term Memory

A type of memory capable of storing information for an extended period, ranging from hours to a lifetime.

Primary Memory

Another term for short-term memory, referring to the capacity for holding a small amount of information in mind in an active, readily available state.

Working Memory

A cognitive system responsible for temporarily holding information available for processing and problem-solving.