12. The marginal productivity theory Which of the following points constitute the marginal productivity theory? Check all that apply. Marginal factor cost of a firm that is a factor price taker, is constant and equal to its factor price. Firms hire the factor quantity at which marginal revenue product equals marginal factor cost. Marginal revenue product of a perfectly competitive firm is greater than value marginal product. Marginal revenue product of a perfectly competitive firm equals value marginal product. Suppose that Lorenzo works for Clear Drop Co, a perfectly competitive firm producing water filters. Lorenzo was paid $4,000 but found a better job and quit Clear Drop. Since nothing else changed, Clear Drop's total revenue
12. The marginal productivity theory Which of the following points constitute the marginal productivity theory? Check all that apply. Marginal factor cost of a firm that is a factor price taker, is constant and equal to its factor price. Firms hire the factor quantity at which marginal revenue product equals marginal factor cost. Marginal revenue product of a perfectly competitive firm is greater than value marginal product. Marginal revenue product of a perfectly competitive firm equals value marginal product. Suppose that Lorenzo works for Clear Drop Co, a perfectly competitive firm producing water filters. Lorenzo was paid $4,000 but found a better job and quit Clear Drop. Since nothing else changed, Clear Drop's total revenue
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.8P
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Transcribed Image Text:12. The marginal productivity theory
Which of the following points constitute the marginal productivity theory? Check all that apply.
Marginal factor cost of a firm that is a factor price taker, is constant and equal to its factor price.
Firms hire the factor quantity at which marginal revenue product equals marginal factor cost.
Marginal revenue product of a perfectly competitive firm is greater than value marginal product.
Marginal revenue product of a perfectly competitive firm equals value marginal product.
Suppose that Lorenzo works for Clear Drop Co, a perfectly competitive firm producing water filters. Lorenzo was paid $4,000 but found a better job
and quit Clear Drop. Since nothing else changed, Clear Drop's total revenue
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