Answer:
The correct answer is option a.
Explanation:
In a perfectly competitive labor market, after some point, the marginal revenue product derived from hiring an additional worker starts declining. This causes the marginal revenue curve to slope downward after a certain point.
This happens because of diminishing marginal returns. The law of diminishing marginal returns states that keeping other things constant if we keep increasing a variable factor, after certain the marginal returns from each additional unit will start declining.
I was stuck on the same question. When I find out I’ll tell you immediately!!!
Answer:
C) consumers make choices that will leave them as satisfied as possible given their incomes, tastes, and the prices of goods and services available to them.
Explanation:
Economists adopt the principle of rationality of economic agents. Thus, consumers make their consumption decisions rationally, based on their preferences and the price of goods and services offered. This will be done to the best of our ability in view of each consumer's budget constraint. Thus, with the value of their income, the consumer will buy the basket of products that best benefits and satisfaction.
Inflation I'm pretty sure, hope it helps ;)