A firm will use more and more labor until the marginal revenue product of labor

A. rises to the level of the wage rate.
B. falls to the level of the wage rate.
C. rises above the wage rate.
D. falls below the wage rate.


B. falls to the level of the wage rate.

Economics

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A vertical merger, like the merger of Seagate and Dell, would be attractive

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"Given that labor remains relatively immobile within Europe, the European Union's success in liberalizing its capital flows may have worked perversely to worsen the economic stability loss due to the process of monetary unification." Discuss

What will be an ideal response?

Economics

Suppose the economy's production function is Y = AK0.3N0.7. Suppose K = 200, N = 2000, and A = 1. Calculate the marginal products of labor and capital

What will be an ideal response?

Economics

Refer to Figure 5.1. All else equal, an increase in total factor productivity will cause a

A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.

Economics