Figure 17.1 depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $12, how many hours of labor will the firm demand?
A. smaller than 30 hours
B. between 30 hours and 40 hours
C. between 40 hours and 50 hours
D. greater than 50 hours
Answer: C
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The expected value of litigation is the expected value of the ________ from litigation for the plaintiff and the expected value of the ________ from the litigation for the defendant.
A) loss; loss B) gain; gain C) loss; gain D) gain; loss
The current system of exchange rates can best be described as:
A. freely fluctuating exchange rates. B. managed floating exchange rates. C. rigidly fixed exchange rates. D. an adjustable peg system.
If labor is a variable input in production, the law of diminishing marginal returns implies that in the short run
A. total product is negative. B. labor's marginal product decreases after a certain point. C. total product is negative after a certain point has been reached. D. labor's marginal product is constant.