The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is 30, the marginal product of labor is 20, the price of labor is $20, and the price of the output is $5
For Acme Company, the marginal revenue product of labor A) is $100.
B) is $150.
C) is $400.
D) is $600.
E) cannot be determined with the information provided.
A
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The price of one good in relation to the price of another good is called:
A) absolute prices B) exchange rate C) relative prices D) none of the above
Crunchy Chips is a potato chip manufacturer. To produce the chips, Crunchy Chips needs to first peel and slice the potatoes and then fry them within two minutes of slicing to prevent browning. If Crunchy Chips is unable to fry the potatoes within two minutes, it must freeze the chips and later defrost them to fry them. Which of the following is true for Crunchy Chips?
A) Crunchy Chips faces a hold-up problem. B) Crunchy Chips has production technological interdependency. C) Vertically integrating the slicing and frying process will increase production costs. D) Crunchy Chips has no production technological interdependency.
Suppose you get a tax refund of $20,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if that deposit allows the bank to loan out $17,000 . then the legal reserve requirement must be
a. 0.15 percent b. 0.85 percent c. 1.5 percent d. 8.5 percent e. 15 percent
The concentration ratios for various industries in the United States are comparable to those in other modern industrial economies
Indicate whether the statement is true or false