Asked by Crystal Weaver on Jun 14, 2024

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If a firm is selling in an imperfectly competitive product market,then:

A) average product will be less than marginal product for any number of workers hired.
B) the marginal products of successive workers must be sold at lower prices.
C) the marginal products of successive workers can be sold at higher prices.
D) the marginal products of successive workers can be sold at a constant price.

Imperfectly Competitive

Refers to market structures that do not meet the conditions of perfect competition, including monopolistic competition, oligopoly, and monopoly.

Marginal Products

This term refers to the extra output gained by adding one more unit of a specific input, keeping other inputs constant, in the production process.

Product Market

The marketplace where final goods or services are offered for purchase by consumers, businesses, and the public sector.

  • Understand the concepts of imperfect competition and how it affects the labor market.
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SM
sofia munozJun 17, 2024
Final Answer :
B
Explanation :
In an imperfectly competitive market, firms face a downward-sloping demand curve, meaning they must lower the price to sell additional units of output. This implies that the marginal products of successive workers, which contribute to these additional units of output, must be sold at lower prices.