When the supply of labor to a firm is perfectly elastic the marginal factor cost will equal the
A. market price of the product.
B. wage rate times the number of workers.
C. marginal physical product.
D. wage rate.
Answer: D
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The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?
A) 20 percent B) 30 percent C) 55 percent D) 70 percent
The last Big Mac that Eva consumes costs $2.00 and gives her 24 units of utility. The last Whopper she consumes costs $1.50 and gives her 18 units of utility. Eva is maximizing her utility. If the price of the Whopper falls to $1.30 and given diminishing marginal utility, Eva should:
A. keep consuming the current amounts of both Big Macs and Whoppers. B. realize that she doesn't have enough information to answer the question. C. consume more Whoppers and fewer Big Macs. D. consume more Big Macs and fewer Whoppers.
Exhibit 11-11 GDP data (billions of dollars) Personal consumption expenditures$4,750 Exports810 Government spending1,400 Social Security taxes600 Depreciation450 Indirect business taxes550 Imports850 Gross private domestic investment900 Corporate income taxes200 Personal taxes800 Corporate profits50 Transfer payments700 In Exhibit 11-11, and using the expenditures approach, gross domestic product (GDP) equals:
A. $7,010 billion. B. $10,360 billion. C. $9,660 billion. D. $7,860 billion.
Cyclical unemployment increases during recessions.
Answer the following statement true (T) or false (F)