Wally's Wheat Farm sells its output and hires its labor in perfectly competitive markets. In the short run, Wally can vary only one input-labor. In short-run equilibrium, all of the following conditions, except one, will be satisfied. Which is the exception?
a. The marginal revenue product of labor equals the wage rate.
b. The marginal revenue product of labor would decrease if more labor is hired.
c. Marginal revenue equals the price of the firm's output.
d. The marginal product of labor would decrease if more labor is hired.
e. The firm's total revenue will decrease if more labor is hired.
E
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