Which of the following points constitute the marginal productivity theory? Check all that apply. Firms hire the factor quantity at which marginal revenue product equals marginal factor cost. Firms hire the factor quantity at which marginal revenue product is lower than marginal factor cost. Marginal factor cost is diminishing and is lower than its factor price. Marginal revenue product of a perfectly competitive firm equals value marginal product. Suppose that Dina works for Sunny Sky Co, a perfectly competitive firm producing solar lights. Dina was paid $3,000 but found a better job and i Sunny Sky. Since nothing else changed, Sunny Sky's total revenue

Which of the following points constitute the marginal productivity theory? Check all that apply. Firms hire the factor quantity at which marginal revenue product equals marginal factor cost. Firms hire the factor quantity at which marginal revenue product is lower than marginal factor cost. Marginal factor cost is diminishing and is lower than its factor price. Marginal revenue product of a perfectly competitive firm equals value marginal product. Suppose that Dina works for Sunny Sky Co, a perfectly competitive firm producing solar lights. Dina was paid $3,000 but found a better job and i Sunny Sky. Since nothing else changed, Sunny Sky's total revenue

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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12. The marginal productivity theory
Which of the following points constitute the marginal productivity theory? Check all that apply.
Firms hire the factor quantity at which marginal revenue product equals marginal factor cost.
Firms hire the factor quantity at which marginal revenue product is lower than marginal factor cost.
Marginal factor cost is diminishing and is lower than its factor price.
Marginal revenue product of a perfectly competitive firm equals value marginal product.
Suppose that Dina works for Sunny Sky Co, a perfectly competitive firm producing solar lights. Dina was paid $3,000 but found a better job and quit
Sunny Sky. Since nothing else changed, Sunny Sky's total revenue

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