Author Question: If a profit-maximizing firm is a price taker in the input market but not in the output market, its ... (Read 77 times)

Shelles · **on:** Jul 1, 2018

If a profit-maximizing firm is a price taker in the input market but not in the output market, its marginal value product of labor
a. exceeds the marginal revenue product of labor.
b. equals its marginal revenue product of labor.
c. is less than the marginal revenue product of labor.
d. equals the marginal physical product of labor.

Question 2

An input's marginal revenue product is given by
a. the input's marginal expense times marginal revenue.
b. the input's marginal expense times the input's marginal physical productivity.
c. marginal revenue times the number of units employed.
d. the input's marginal physical productivity times marginal revenue of the firm's output.