Asked by
Bryanna Fouser
on Dec 08, 2024
Verified
If Tie-Dyed T-Shirts is currently employing labor so that the wage is greater than the marginal revenue product of labor, it must also be true that
A) total revenues would be less than total costs.
B) the wage is less than marginal cost.
C) the price of the product must be less than marginal cost.
D) the price of the product must be greater than marginal cost.
Marginal Revenue Product
The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.
- Identify and clarify the marginal revenue product (MRP) concept, underscoring its pivotal importance in employment strategy decisions.
- Understand the relationship between product market behavior and labor market outcomes.
Verified Answer
KM
Learning Objectives
- Identify and clarify the marginal revenue product (MRP) concept, underscoring its pivotal importance in employment strategy decisions.
- Understand the relationship between product market behavior and labor market outcomes.