Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue from the last unit of output must be
a. $1
b. $1.50
c. $4
d. $5
e. $20
C
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The term ceteris paribus means
A) the greatest good for all. B) the study of scarcity and choice. C) all other things remaining constant or equal. D) value-free and testable.
Refer to the accompanying figure. For Chris, the opportunity cost of planting one bulb is removing:
A. 3 bags of trash. B. 25 bags of trash. C. 1/25 of a bag of trash. D. 1/3 of a bag of trash.
The difference between the price of electronic equipment in a retail store and on the Internet partly reflects:
A. the value of personal attention and support at a retail store. B. the extent to which middlemen drive the price up for extra profit. C. excessive markup. D. the lack of competition between brick and mortar stores and online stores.
Exhibit 19-4 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 4,000 Checkable deposits$20,000 Excess reserves16,000 Loans 0 Total$20,000 Total$20,000 Suppose Connie Rich deposits $500 in the bank in Exhibit 19-4. The result would be that the bank must increase its required reserves to:
A. $4,100. B. $4,500. C. $5,100. D. $5,500.