In the long run, a competitive firm has a marginal product of labor, MPL = L-1. The output price is $20 per unit and the wage is $7.25 per hour. The long-run labor demand curve for the firm is
A) 20L-0.05.
B) 7.25L-0.05.
C) 20L-1.
D) 7.25L-1.
C
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The First Welfare Theorem states that, invariably, a competitive market results in an efficient allocation of resources and thus maximizes social surplus. ?
Answer the following statement true (T) or false (F)
If you, as sole proprietor of a corner grocery store, work 15 hours per day, six days a week but do not take a money wage payment, then the cost to your firm of your labor is your
a. opportunity cost and is considered an explicit cost b. opportunity cost and is considered an accounting cost c. opportunity cost and is considered an implicit cost d. explicit cost and is considered an opportunity cost e. implicit cost even though it is considered an explicit cost
When Milton Friedman said that inflation is always and everywhere a monetary phenomenon, he was referring to
A) one-shot inflation B) supply-induced inflation C) continued inflation D) hyperinflation (high rates of inflation) E) all kinds of inflation
he long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ________ when ________.
What will be an ideal response?