For a competitive firm experiencing diminishing marginal productivity, the value of the marginal product (i) increases when the price of output decreases. (ii) changes when marginal product changes. (iii) diminishes as the number of workers rises
a. (i) and (ii)
b. (i) and (iii)
c. (ii) and (iii)
d. All of the above are correct.
c
Economics
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The income effect for an inferior good
A) is negative. B) is zero. C) is positive. D) could be negative, zero, or positive.
Economics
If firms are competitive and profit-maximizing, the demand curve for labor is determined by
a. the opportunity cost of workers' time. b. the value of the marginal product of capital. c. the value of the marginal product of labor. d. the ratio of the marginal product of labor to the marginal product of capital.
Economics