If a firm pays its workers $10 per hour, the marginal product of labor is 5 units per hour, and the price of the firm's product is $15 per unit, what is the price elasticity of demand facing the firm?
A) -1.15
B) -2.15
C) -1.0
D) -3.56
A
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We could increase the production of both heart transplants and round-the-world trips if we moved to point T from point
A. P.
B. Q.
C. R.
D. S.
During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities. The result of this legislation was
A. a large increase in the availability of those items, ending shortages. B. a severe shortage of those essential commodities. C. an increase in the price of those items, thus alleviating shortages. D. new efforts to increase production of those commodities. E. a minor inconvenience as persons adjusted to the new law.
The government places a price control on navel oranges, saying that stores cannot charge more than $1 per pound. Considering this, which of the following would be the most likely result?
a. grocery stores having crates of rotting navel oranges b. grocery stores running out of navel oranges c. grocery stores selling the usual amount of navel oranges d. grocery stores giving away navel oranges to charities
Personal income is equal to
A. national income minus (corporate income taxes and Social Security). B. NDP minus national income. C. disposable personal income plus personal income taxes. D. disposable personal income plus personal and corporate income taxes.