1. \" follows that the neoclassical explanation for what ultimately determines i

Question

1. " follows that the neoclassical explanation for what ultimately determines income and its distribution in society is remarkable both for what it claims and for what it rules out as a possibility. The claim is that each individual gets back from society a quantum of wealth exactly proportional to what each has contributed to society. This theory of distribution is remarkable for its inherent fairness. It is also remarkable for what it rules out: exploitation." -Wolff&Resnick.; Contending Economic Theories: Neoclassical, Keynesian, and Marxian (Page 90) Choose from the following list the equation that best summarizes the idea above as it relates to the labor market. O A. P-MC 0 B, w-MRPL 0 D. P1 /P2-MU1 /MU2 Subnit Answer Continue without saving

Explanation / Answer

B> w=MRPL

Reason

This equation means the wage rate is same the marginal rate of labor product, so the revenue that a firm obtains by employing one more labor is the same as the wage rate of the firm.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.