City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve
The lowest wage rate at which City-Mart can hire 40 hours of labor per day is A) $8 per hour.
B) $12 per hour.
C) $4 per hour.
D) $9 per hour.
C
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Explain the difference between the Fed following discretionary policy and the Fed following a rules strategy
What will be an ideal response?
In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy
a. increases exports and decreases imports. b. decreases exports and increases imports. c. encourages foreign capital inflows to the U.S. d. both b and c. d. None of the above
The marginal propensity to consume (MPC) is calculated by which formula?
A. MPC = change in DI divided by change in C B. MPC = change in GDP divided by change in DI C. MPC = change in C divided by change in DI D. MPC = change in C divided by change in GDP
The marginal tax rate for a lump-sum tax
a. is always positive. b. is always negative. c. is zero. d. can take on any value but must be greater than the average tax rate.