For a Firm That Is Competitive in Both Product and Factor

For a firm that is competitive in both product and factor markets, the value of the marginal revenue product of labor:

A) is constant and equal to the market wage.
B) increases, causing the labor supply curve to slope upward.
C) declines because the marginal product of labor diminishes as the number of workers rises.
D) declines because a competitive firm must lower product price in order to increase sales.

Correct Answer:

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