Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is $6 and the marginal product of the last unit of labor hired by the firm is 2 units, the market wage rate must be:
A) $3.
B) $6.
C) $12.
D) $18.
C
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Which of the following would increase the net export component of U.S. GDP?
A. A bottle of California wine is purchased in London. B. A bottle of French wine is purchased in New York. C. A car produced in Michigan is purchased in Louisiana. D. A car produced in Japan is purchased in California.
Which of the following is an example of signaling in a market with asymmetric information?
A) Certification of used cars by third parties B) Rent controls imposed by the government C) Discounts offered by sellers during the holiday season D) Taxation of alcoholic beverages
You lose your job and as a result your demand for steak falls. This implies that you consider steaks to be a
a. Complementary good b. Normal good c. Inferior good d. Substitute good
Despite its status as one of the richest countries in the world, Japan
a. has a very low level of productivity. b. has few natural resources. c. has very little human capital. d. engages in a relatively small amount of international trade.