The cost efficiency of labor is equal to the
A. MRP of labor divided by the unit price of labor.
B. MPP of labor divided by the wage rate.
C. MPP of labor times the wage rate.
D. Marginal cost of output.
Answer: B
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Physicians who accept assignment on their Medicare patients
a. bill patients for 80 percent of the allowable fee. b. agree to forego balance billing. c. accept the allowable fee for all services. d. agree to charge private insurance patients the same fees as Medicare patients. e. Both b and c.
In both perfect competition and monopoly, a firm: a. maximizes profit by equating marginal revenue to marginal cost
b. will shut down in the short run if price is less than average variable cost. c. will always earn a zero economic profit. d. will be characterized by both (a) and (b).
A tax on the buyers of sofas
a. increases the size of the sofa market. b. decreases the size of the sofa market. c. has no effect on the size of the sofa market. d. may increase, decrease, or have no effect on the size of the sofa market.
Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely:
A. make an economic profit. B. go out of business. C. expand to a bigger operation. D. break even.