Multiple Choice
When a firm is competitive in both product and factor markets, which of the following statements best describes the value of the marginal product of labour?
A) It increases, causing the labour supply curve to slope upward.
B) It declines because the marginal product of labour diminishes as the number of workers rises.
C) It declines because a competitive firm must lower product price in order to increase sales.
D) It is constant and equal to the market wage.
Correct Answer:
Verified
Correct Answer:
Verified
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