For a Firm That Is Competitive in Both Product and Factor

question 227

Multiple Choice

For a firm that is competitive in both product and factor markets, the value of the marginal revenue product of labor:

• A)is constant and equal to the market wage.
• B)increases, causing the labor supply curve to slope upward.
• C)declines because the marginal product of labor diminishes as the number of workers rises.
• D)declines because a competitive firm must lower product price in order to increase sales.

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Definitions:

Randomized

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Controlled Trials

A scientific method used to test the effectiveness and safety of interventions by comparing outcomes between a controlled group and an experimental group.

Cardiovascular Disease-Related Death

Deaths that are directly attributable to cardiovascular diseases such as heart attacks or stroke.

Healthy Weight

A weight that is considered appropriate for a given height, age, and sex, often associated with a low risk of developing chronic diseases.