Asked by Abdulaziz Bin Dharman on May 02, 2024

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Marginal resource (labor)cost will always exceed the wage rate when the employer is selling its product in an imperfectly competitive market.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource, such as labor or capital.

Imperfectly Competitive Market

A market structure where individual sellers have some control over the price of their goods due to lack of perfect competition, often resulting in higher prices for consumers.

  • Discern the qualities of monopsonistic hiring entities and their repercussions on wage scales and workforce numbers.
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BM
Blake MooreMay 08, 2024
Final Answer :
False
Explanation :
Marginal resource cost exceeds the wage rate when the employer has market power in the labor market, not necessarily in the product market. In an imperfectly competitive product market, the firm faces a downward-sloping demand curve for its product, which affects its pricing and output decisions, but this does not directly determine the relationship between marginal resource cost and the wage rate.