Assuming labor is the only variable factor of production, production of a good will occur
A. as long as the product's price is greater than the marginal revenue product of labor.
B. as long as the marginal revenue product of labor is positive.
C. if society values a good more than it costs firms to hire the workers to produce the good.
D. if the marginal cost of a unit of output equals the marginal revenue product of labor.
Answer: C
You might also like to view...
The value of the multiplier ________ as the marginal propensity to save decreases
A) decreases B) increases C) is constant D) becomes negative
In the early 1930s, the currency-deposit ratio rose, as did the level of excess reserves. Money supply analysis predicts that, everything else held constant, the money supply should have
A) risen. B) fallen. C) remain unchanged. D) either risen, fallen, or remain unchanged.