Multiple Choice
Use the information below to answer the following questions.
Fact 18.2.1
Wanda's is a fish store that hires students to pack the fish. The fish market is competitive. Originally the price is 50¢ a kilogram. The market for packers is competitive and their market wage rate is $7.50 an hour. Then the market price of fish falls to 33.33¢ a kilogram but the wage rate of fish packers remains at $7.50 an hour.
-Refer to Fact 18.2.1. As a result, students' marginal product ________ and students' value of marginal product ________.
A) decreases; does not change
B) does not change; does not change
C) decreases; decreases
D) does not change; decreases
E) decreases; increases
Correct Answer:

Verified
Correct Answer:
Verified
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