The Following Table Shows Total Output Produced by Different Units

The following table shows total output produced by different units of capital.Table 14.3
The marginal revenue product of a resource is the product of the marginal product of the resource and the marginal revenue.
-In a perfectly competitive labor market, a profit-maximizing firm that is also perfectly competitive in the product market will:

A) face a perfectly inelastic supply curve of labor.
B) pay a wage that is equal to the price of the product.
C) pay a wage that is equal to the marginal product of labor.
D) hire more units of labor than would a firm that sells its output in a monopoly market.
E) pay a wage equal to the marginal factor cost.

Correct Answer:

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