In a perfectly competitive market setting, which of the following would be a true statement?
A. Market price automatically sets itself exactly at equilibrium.
B. Market price rarely trends toward the equilibrium value.
C. Wage rates mirror marginal revenue product levels exactly.
D. Wage rates trend toward marginal revenue product levels.
Answer:D
In a perfectly competitive market setting, which of the following would be a true statement?
A. Market price automatically sets itself exactly at equilibrium. B. Market price rarely trends toward the equilibrium value. C. Wage rates mirror marginal revenue product levels exactly. D. Wage rates trend toward marginal revenue product levels.
Explanation: 65. When a firm makes plans for investments in physical capital, it compares the _______________ on these investments with ______________________ .