The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive.
One circumstance under which factor markets may fail to be competitive is if there is imperfect information.
Which of the following are ways in which firms seek to overcome information problems? Select all that apply.

a) Only hiring workers who have earned good grades in college.
b) Always hiring from the outside to avoid being accused of discrimination.
c) Promoting workers from within the company who have shown themselves to be productive, rather than hiring from outside.

The answer is A.

Explanation:

A perfectly competitive factor market can be defined as a perfectly competitive market where all the products produced by different manufacturers are the same, the product cost and the price of the product are known to all parties etc.

Imperfect information in economics refers to a situation where the information among different parties such as manufacturer, consumer etc is not equal and balanced.

The correct answer among the given options is A, hiring workers that have earned good grades in college to make up for the information imbalance and overcome the imperfect information problem.

I hope this answer helps.

the answer is: guns or butter

hope i

-lavira : )

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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