A firm will find it profitable to hire workers up to the point at which their:
A. marginal resource cost equals their wage rate.
B. wage rate equals product price.
C. MP is equal to their MRP.
D. marginal resource cost is equal to their MRP.
Answer: D
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Refer to the Article Summary. Labor productivity in the UK was well below the productivity in five of the other G7 nations, only faring better than Japan.. Labor productivity is important for an economy because an increase in labor productivity
A) will increase output and decrease wages in the long run. B) will increase the labor force participation rate. C) will create short-run, but not long-run, economic growth. D) allows the average consumer to increase consumption.
The long-run average cost of producing 19 units of output is $56, and the long-run average cost of producing 20 units is also $56. These numbers illustrate:
A. diseconomies of scale. B. constant returns to scale. C. decreasing marginal productivity. D. economies of scale.
Demand shifters do not include the
A. consumer's tastes and preferences. B. the price of the other related goods. C. price of the good. D. consumer's expectations about future prices of the good.
Refer to the data provided in Table 16.3 below to answer the following question(s).Table 16.3 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.3Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$8 $81$16$16212202 24 40318383 32 72426644 401125361005 48160Refer to Table 16.3. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade
permits, what is the total cost of the pollution reduction? A. $0 B. $60 C. $104 D. 110