The value of marginal product of the tenth worker hired by a firm is $50. What is the maximum wage that should be paid to the worker?
A) $5 B) $500 C) $50 D) $0.20
C
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Suppose the exchange rate is 10 pesos per dollar and you use $1000 to purchase a one-year Mexican bond that pays 10% interest. Next year, the exchange rate is 11 pesos per dollar
Assuming you convert your funds back to U.S. dollars, how much money will you have in one year? A) $1000 B) $1100 C) $91 D) $0
Around what percentage of state government spending is finance by intergovernmental transfers? Give three justifications for intergovernmental transfers
What will be an ideal response?
Which of the following statements is true?
A) If current Real GDP is greater than Natural Real GDP, the economy is in a recessionary gap. B) If current Real GDP is less than Natural Real GDP, the economy is in long-run equilibrium. C) Wages are flexible if the economy is self-regulating. D) Wages rise but prices remain constant in long-run equilibrium. E) All economists believe the economy is self-regulating.
If a perfectly competitive industry suddenly became a monopolist, equilibrium output would _________, and the equilibrium price would _________.
a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase