If a Firm Is a Price Taker in Both the Input

question 4

Multiple Choice

If a 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 other answers are correct.

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Definitions:

Shock Plate

A device used in psychological experiments to deliver an electric shock to an animal or human subject.

Obedience

The act of following orders or directions from a figure of authority.

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority figures, where participants thought they were administering electric shocks to another person.

Confederate

In psychological experiments, a confederate is an individual who seems to be a participant but is actually in on the experiment, helping the researcher manipulate the situation or observe participants' behaviors.