A firm’s labor input, total output of labor, and product price schedules are given below. If labor is the only variable input, how much labor should the firm employ if the wage rate is $8 per day?

What will be an ideal response?






The firm should hire 5 workers. The MRP of the fifth worker is $11 and the MRC is $8.

Economics

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Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium

What are the effects of each of the following on output, the expected real interest rate, and the current price level? (a) a temporary increase in taxes (b) a reduction in the effective tax rate on capital (c) an increase in expected inflation

Economics

A player's strategy is a game plan when decisions are interdependent

a. True b. False

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It has been observed that people surveyed shortly after major air crashes estimate higher probabilities that a given flight will crash than people surveyed during intervals without any. The error in reasoning observed in this experiment results from:

a. availability heuristics. b. representative heuristics. c. population heuristics. d. selection bias.

Economics

In the United States, the central bank is the:

A. National Bank of the United States. B. Congressional Budgeting Office. C. Federal Reserve. D. Treasury.

Economics