What is the relationship between a firm's value of marginal product curve for labor and its demand for labor curve? Explain why this relationship exists
What will be an ideal response?
The value of marginal product curve for labor is the same as the demand for labor curve. The curves are the same because of the firm's profit-maximizing decisions. In order to maximize its profit, a firm hires the number of workers that sets the wage rate equal to the value of marginal product. So at any wage rate, the firm uses its value of marginal product curve to determine how many workers to hire. But that is what the demand for labor curve shows: how many workers the firm hires at any wage rate. As a result, the value of marginal product for labor is the same as the firm's demand for labor curve.
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If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:
A. $3,500,000. B. $500,000. C. $4,000,000. D. $1,000,000.
A budget surplus occurs when ________
A) government spending exceeds tax revenue B) tax revenue exceeds government spending C) imports exceed exports D) exports exceed imports
In the figure above, U.S. producers' ________ from the tariff is ________
A) loss; $32 million B) loss; $64 million C) gain; $80 million D) gain; $128 million
"If the price of a ticket to Sea World exceeds the marginal cost of the ticket by $13, a producer surplus exists for Sea World." Is this statement true or false?
What will be an ideal response?