Suppose the labor market is perfectly competitive, but the output market is not. When the labor market is in equilibrium, the wage rate will:
A) be less than price times the marginal product of labor.
B) equal price times the marginal product of labor.
C) be greater than price times the marginal product of labor.
D) None of the above is necessarily correct.
A
Economics
You might also like to view...
Most public goods produced by government are nonexcludable because the costs of exclusion are too high
a. True b. False
Economics
When all players are choosing their best strategies on the assumption that their opponents are doing likewise, the outcome is called:
a. a Stackelberg equilibrium. b. a Nash equilibrium. c. a Cournot equilibrium. d. a Bertrand equilibrium.
Economics