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

Principles of Microeconomics
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Chapter18: The Markets For The Factor Of Production
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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
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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