Using Figure 10.2 determine the number of workers that a representative firm would wish to hire. Explain your answer
What will be an ideal response?
A competitive firm using only one variable factor of production will use that factor as long as its marginal revenue product exceeds its unit cost. A perfectly competitive firm will hire labor as long as MRPL is greater than the going wage, W*. The hypothetical firm will demand 2100 units of labor.
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Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, what was the real interest rate you paid?
A) 16 percent B) 12 percent C) 8 percent D) 6 percent
Explain why a monopsonist's marginal labor cost curve must lie above its labor supply curve
An economy that has a private sector and a public sector is called a ______________.
Fill in the blank(s) with the appropriate word(s).
Use the following graph of total revenues to answer the question below. 
When the seller is earning maximum revenues from selling Product X, the demand is
A. inelastic. B. perfectly inelastic. C. elastic. D. unit-elastic.