The Following Table Shows Total Output Produced by Different Units

question 22

Multiple Choice

The following table shows total output produced by different units of capital.Table 14.3
The marginal revenue product of a resource is the product of the marginal product of the resource and the marginal revenue.
-In a perfectly competitive labor market, a profit-maximizing firm that is also perfectly competitive in the product market will:

• A)face a perfectly inelastic supply curve of labor.
• B)pay a wage that is equal to the price of the product.
• C)pay a wage that is equal to the marginal product of labor.
• D)hire more units of labor than would a firm that sells its output in a monopoly market.
• E)pay a wage equal to the marginal factor cost.