A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the
A) marginal revenue product of labor.
B) marginal factor cost of labor.
C) price of the extra output produced.
D) average physical product of labor.
A
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What are the objectives of government taxation and spending?
What will be an ideal response?
The invisible band principle indicates that competitive markets can help promote the efficient use of resources
What will be an ideal response?
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the highest opportunity cost for brushes in terms of combs is
A. 0.29 comb per brush. B. 0.50 comb per brush. C. 23 combs per brush. D. 0.10 comb per brush.
A profit-maximizing firm will continue to employ land until
A. MRPLAND = MPLAND. B. MRPLAND = 0. C. MRPLAND = PLAND. D. MPLAND = PLAND.