Market power at output market

The profit-maximizing firm which is perfectly competitive in the resource market however which consists of market power in the output market will hire the labor at a point where: (p) VMP = MRP = MFC = w. (q) VMP > MRP = MFC = w. (r) VMP = MRP = MFC > w. (s) VMP > MRP = MFC > w.

Can someone please help me in finding out the accurate answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Imperfect competition-Market power of

As MRP < VMP in imperfect competition whenever firms encompass market power as sellers then: (i) MPPL = VMP. (ii) The price of output surpasses MFC. (iii) Monopolistic exploitation becomes essential to get profit. (iv) Imperfect competition can’t reach the eq

Q : Zero or negative marginal utility of a

Whenever the marginal utility of a good becomes negative or zero: (i) Goods are transformed to the bads. (ii) Net utility reaches the maximum and then declines. (iii) The maximum total advantages have been squeezed from good. (iv) People are unwilling

Q : Labor adds uniformly to total revenue

The entire profit maximizing firm will appoint more labor up to the point where: (i) Average physical product of the labor equivalents the nominal wage. (ii) Last unit of the labor adds up equally to net revenue and net cost. (iii) Marginal product of the labor is at

Q : Higher prices and lower output in market

When a previously competitive industry becomes monopolized along with no consequence on market demand or the structure of production costs, the effect will be: (w) higher prices and greater output. (x) lower prices and greater output.

Q : National Income in Equality Standard As

As per the equality standard of income distribution: (w) people should be paid according to their needs for income. (x) income should be distributed to resource owners. (y) justice requires national income to be divided equally. (z) people should be p

Q : Problem on equal marginal utilities per

Substitution takes place when prices change and hence demand curves are negatively-sloped since of the behavior of consumers which most directly underpins the law of: (1) Equivalent marginal utilities per dollar. (2) Diminishing net utility. (3) The income effect. (4)

Discover Q & A

Leading Solution Library

Avail More Than 1451418 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1942359
Asked

3,689

Active Tutors

1451418

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment