Which one of the following holds true at the equilibrium level of demand for labour by a perfectly competitive firm?
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2 marksMicroeconomicsFactor markets and income distributionDerived demand and marginal revenue productModerateabout 1 min
UGC-NET 2025 Question 14: Factor markets and income distribution
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Which one of the following holds true at the equilibrium level of demand for labour by a perfectly competitive firm? (A) VMP_L < MRP_L (B) VMP_L = MRP_L (C) VMP_L > MRP_L (D) VMP_L + MRP_L = W*
Factor markets and income distribution has come up 55 times in 6 exams since 2006.
What this question tests
This question is on Derived demand and marginal revenue product, part of Factor markets and income distribution in Microeconomics.
Why firms demand inputs: the value of what the last unit adds to output or revenue.
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