Author Question: As the quantity of labor increases, value of marginal product for a perfectly competitive firm A) ... (Read 123 times)

laurencescou · **on:** Jun 29, 2018

As the quantity of labor increases, value of marginal product for a perfectly competitive firm

A) decreases because the firm must lower its price to sell a larger quantity.
B) decreases because the marginal product of labor decreases.
C) decreases because marginal revenue decreases.
D) is constant because marginal revenue is constant.

Question 2

The figure above shows Ronald's budget line. He has a weekly income of 20 and he spends it on hot dogs and hamburgers. The relative price of a hamburger is ________.

A) 1/2 hot dog
B) 5 hot dogs
C) 20
D) 2 hot dogs