Which of the following statements is correct?
a. The value of the marginal product curve is the labor demand curve for competitive, profit-maximizing firms.
b. A competitive, profit-maximizing firm hires workers up to the point where the value of the marginal product of labor equals the wage.
c. By hiring labor up to the point where the value of the marginal product of labor equals the wage, the firm is producing where price equals marginal cost.
d. All of the above are correct.
d
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Specialization and trade allow an economy to expand its:
A. production possibilities. B. consumption possibilities. C. technological advantage. D. absolute advantage.
Tobacco could not be grown in England. It could only be produced in the colonial South
Indicate whether the statement is true or false
In macroeconomics, we analyze
a. all of the following b. the overall performance of the economy as a whole c. arrangements through which specific products are exchanged d. influences on the decision making of particular households e. the factors that affect the decisions of individual firms
Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consumer goods200 180 140 80 0 According to the data in Exhibit 2-4, a total output of 140 units of consumer goods and 10 units of capital goods would:
A. be unobtainable in this economy. B. be an efficient way of using the economy's scarce resources. C. result in the maximum use of the economy's labor force. D. result in a less than maximum rate of growth for this economy.