Suppose that all workers place a value on their leisure of 40 goods per day. The production function relating output per day Y to the number of people working per day N is Y = 200N - 2N2and the marginal product of labor is MPN = 200 - 2N.A 20% tax is levied on wages. Output per day would be
A. 9375.
B. 11,250.
C. 5625.
D. 7250.
Answer: A
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Which of the following observations is not true of a budget line?
A. It indicates what choices are available to the consumer. B. It is a curve of constant expenditure. C. Its slope reports the market terms on which the consumer can trade one good for another. D. It helps examine the consumer’s preferences.
A market structure in which many firms compete by making similar but slightly different products is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
The best example of a perfectly competitive market would be the market for:
A. grain. B. shoes. C. computers. D. cameras.
The quantity of real GDP rises with the price level, ceteris paribus
a. True b. False Indicate whether the statement is true or false