CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

For a firm in perfect competition, as the quantity of labor increases, the marginal revenue product most likely diminishes, because of a decline in ______.
A. marginal product only
B. marginal revenue only
C. both marginal product and marginal revenue
Explanation: For a firm in perfect competition, as quantity of labor increases, marginal revenue product diminishes because marginal product diminishes.

User Contributed Comments 1

User Comment
kingirm in perfect competition price is flat
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