Figure 20-1
-Which of the following would not be true of a competitive labor market?
A)Wages would be determined by supply and demand.
B)The demand curve for labor would be derived like the demand curve for any other input.
C)The demand curve for labor would be the downward-sloping portion of the MRP curve.
D)Labor supply would be determined by the marginal revenue product curve.

Question

Figure 20-1 
-Which of the following would not be true of a competitive labor market?
A)Wages would be determined by supply and demand. 
B)The demand curve for labor would be derived like the demand curve for any other input. 
C)The demand curve for labor would be the downward-sloping portion of the MRP curve. 
D)Labor supply would be determined by the marginal revenue product curve.

Quizplus · Accepted Answer

Labor supply is not determined by the marginal revenue product curve but rather by individual choices made by workers considering factors such as wage rates, non-wage benefits, and working conditions. The marginal revenue product curve only shows how much firms are willing to pay for each additional unit of labor.

Figure 20-1 -Which of the Following Would Not Be True of a True