The following table shows output per hour produced by the different units of labor.Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.
-The structure of the product market as described by Table 14.1 is:
A)monopolistic.
B)oligopolistic.
C)perfectly competitive.
D)monopsonistic.
E)monopolistically competitive.

Question

The following table shows output per hour produced by the different units of labor.Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue. 
-The structure of the product market as described by Table 14.1 is:
A)monopolistic. 
B)oligopolistic. 
C)perfectly competitive. 
D)monopsonistic. 
E)monopolistically competitive.

Quizplus · Accepted Answer

The table shows output per hour for different units of labor, which implies that the product market is perfectly competitive. In a perfectly competitive market, no single producer or consumer can influence the market price, and all units of the product are identical. Therefore, the marginal revenue product (MRP) of a resource is equal to the product of the marginal product of an input and the market price of the output, which is equivalent to the marginal revenue.

The Following Table Shows Output Per Hour Produced by the Different