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

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.