In a competitive economy, a worker earns an income equivalent to ?
Correct answer: C. Marginal Product
- A. The amount of brain drain
- B. Marginal utility
- C. Marginal Product
- D. The substitutability of labor to capital
Explanation
In a competitive labor market, a worker’s wage equals the value of the marginal product of labor, meaning the extra revenue generated by the worker’s output. Option c states this principle in shortened form as marginal product.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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