Suppose MPL = 40 and MPK = 20 and the rental rate on capital is $10 . If the level of production is currently efficient, the wage rate must be
a. $10
b. $5
c. $20
d. $40
c
You might also like to view...
National saving is defined as the amount of
A) business saving. B) household saving. C) business saving and household saving. D) private saving and government saving.
Which of the following is the best example of an action that imposes an external cost?
a. Wear and tear on your car as the result of frequent use. b. Deterioration in the average quality of a house you own as the result of poor maintenance. c. Water pollution from an upstream factory that increases the cost of providing clean water to downstream residents. d. A rose garden on your property from which your neighbor gets much enjoyment.
The demand schedule is a price list for a fixed basket of consumer goods following a particular format
a. True b. False Indicate whether the statement is true or false
Should all pollution be banned? Why might some level of pollution be economically efficient?
Please provide the best answer for the statement.