Marginal revenue product can be calculated using the formula marginal product × output price
A) only if the both marginal product of labor and the output price are constant.
B) only if the firm has market power in the labor market
C) only if output price is constant.
D) only if the marginal product of labor is constant.
C
You might also like to view...
The official reserve transactions balance in the United States balance of payments accounts is
a. reflects the difference between government spending and total taxes. b. negative if a current account deficit exceeds a capital account surplus. c. positive if a current account deficit exceeds a capital account surplus. d. none of the above
By switching its sales agents to a sales neutral profit commission, the firm is trying to convince the agents
a. To not change their sales patterns, as it would not change their compensation b. Improve their compensation by pricing less aggressively c. Improve their compensation by pricing more aggressively (lowering prices) d. None of the above