Oscar's Flower Shop Maximizes Profits by Hiring 4 Workers in a Perfectly

question 16

Multiple Choice

Oscar's Flower Shop maximizes profits by hiring 4 workers in a perfectly competitive labour market.The workers and their value of the marginal product of labour are Noe,$40;Barbara,$35;Calvin,$27;and Diana,$15.According to the marginal productivity theory of income distribution,which statement is TRUE?

• A) In equilibrium,each worker is paid his or her value of the marginal product of labour.
• B) Each worker is paid a wage equal to the highest value of the marginal product of labour .
• C) Each worker is paid $15.
• D) We need to know the product price before we can figure out the wage rate.

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