The Acme Company is a perfect competitor in its input markets and a monopolist in 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.


E

Economics

You might also like to view...

Holding all else constant, an increase in the real interest rate on U.S. assets will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.

A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase

Economics

If the Fed buys $10 million of government securities when the desired reserve ratio is 20 percent and the currency drain ratio is 5 percent, the quantity of money

A) increases by $42 million. B) increases by $50 million. C) decreases by $42 million. D) decreases by $50 million. E) increases by $7.5 million.

Economics

Explain the time-inconsistency problem. What is the likely outcome of discretionary policy? What are the solutions to the time-inconsistency problem?

What will be an ideal response?

Economics

The Solow growth model predicts that a lower labor force growth rate will lead to

A) a decreased steady state and higher break-even investment. B) higher productivity and a higher standard of living. C) a lower saving rate and decreased investment. D) a higher rate of dilution and lower break-even investment.

Economics