3015EconomicsMedium
The Marginal Revenue Product is likely to be wage inelastic if?
ALabour costs are a high percentage of total costs
BDemand for the final product is price inelastic
CThere are many substitutes for the final product
DIt is relatively easy to substitute capital for labour
Correct answer
C. There are many substitutes for the final product
Explanation
The correct answer is There are many substitutes for the final product.