Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm. If the firm pays a wage of $700 per week and the marginal product of labor equals 10 units per week, then the marginal cost of producing an additional unit of output is
a. $7.
b. $70.
c. $700.
d. We do not have enough information to answer this question.
b
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Explain the relationship between the real interest rate and the demand for loanable funds. Compare that relationship to the relationship between expected profit and the demand for loanable funds
What will be an ideal response?
Which of the following was true of the U.S. job market between 1929 and 2011? a. The number of jobs created in the organized sector was less than that in the unorganized sector. b. The number employed people increased by less than five percent
c. The average education of workers increased over the years. d. The productivity of workers declined over the years. e. The growth in employment opportunities was slower compared to the growth in population.
Suppose option A has a higher expected value than option B. Which of the following statements is, in general, true?
A. A risk-averse person prefers option B to option A. B. A risk-averse person prefers option A to option B. C. A risk-neutral person is indifferent between options A and B. D. Insufficient information to determine.
Which policy is likely to be the most efficient in dealing with automobile emission pollution?
A. Subsidizing research and development for alternative forms of transportation B. Voluntary emission control guidelines C. A mandatory requirement to reduce pollution D. An emission tax