Asked by Melody Martenson on Jun 13, 2024
Verified
The marginal cost of a unit of labor in a perfectly competitive labor market is
A) its average MRP.
B) equal to product price.
C) the market wage rate.
D) equal to MRP.
Marginal Cost
The cost implicated in the production of one more unit of a good or service.
Perfectly Competitive
A market structure characterized by many small firms, a homogeneous product, no barriers to entry or exit, and where no single firm can influence the market price.
- Learn about the interrelationship among payment rates, efficiency in work, and job availability in a market-oriented employment sector.
Verified Answer
AA
Anis Aqilah Nizam ShahJun 15, 2024
Final Answer :
C
Explanation :
In a perfectly competitive labor market, the marginal cost of a unit of labor is the market wage rate, because firms take the wage rate as given and can hire additional units of labor at this rate.
Learning Objectives
- Learn about the interrelationship among payment rates, efficiency in work, and job availability in a market-oriented employment sector.