If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where
A) TR = TC.
B) the MRP = the wage rate.
C) the MRP = the marginal physical product of labor.
D) the MRP = the output price.
Answer: B
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A free good is a good whose existence requires no opportunity cost to produce. How is this different from a good that is offered for a price of zero?
What will be an ideal response?
GDP per capita can be summarized to be:
A. a measure of average well-being in a country. B. a gauge of the direction an economy when we examine GDP changes over one year. C. the measureofvalue of all activity inside a national economy. D. the best measure of well-being for all citizens inside a country
If the purchase and sale of marijuana becomes legalized
A) the equilibrium price and quantity will both rise. B) the equilibrium price will fall, but the change in equilibrium quantity depends upon whether the demand curve shifts rightward more or the supply curve shifts rightward more. C) the equilibrium quantity will rise, but the change in equilibrium price depends upon whether the demand curve shifts rightward more or the supply curve shifts rightward more. D) the equilibrium price and quantity will both fall.
The following economy produces two products.ProductsProduction Possibilities?ABCDEFSteel012345Wheat100907555300Refer to the above table. In moving from possibility A to F, the cost of a unit of steel in terms of a unit of wheat:
A. remains constant. B. increases. C. decreases. D. increases from A to B, and decreases from B to F.