Each additional unit of output produced by a unit of labor is valued at the price of the firm's output
a. always.
b. when the firm is selling in a competitive market.
c. when the firm has monopoly power in the market for its output.
d. when the firm has monopsony power in the market for labor.
b. when the firm is selling in a competitive market.
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What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if beef demand rises and ranchers are induced to reduce their flocks of sheep (for wool) in order to grow more cattle?
A) Decrease in demand. B) Decrease in supply. C) Increase in demand. D) Increase in supply
Refer to the figure above. What is the quantity supplied in the market when the market is supplied by one firm?
A) 30 units B) 45 units C) 60 units D) 90 units
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for coffee. What happens in this market if buyers expect the price of coffee to rise?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
The Federal Reserve increases interest rates when it wants to reduce aggregate demand to fight inflation. How do increases in the interest rate reduce aggregate demand?
What will be an ideal response?