When Lionel, an orange grower, hires Terry, Terry's marginal physical product per hour is 9 bushels of oranges. The price is $5 per bushel and the hourly wage rate is $55 . We know then that
a. orange growing is a profitable business
b. Terry creates a division of labor that adds not only output but profit for Lionel
c. the labor market is not competitive because price and the wage rate are not the same
d. Lionel should not have hired Terry
e. Terry's marginal revenue product is greater than the wage rate
D
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What will be an ideal response?
A substantial amount of trade between industrialized countries is intraindustry or intrafirm trade rather than interindustry trade
Indicate whether the statement is true or false
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A. 75 percent. B. 33.33 percent. C. 25 percent. D. 10 percent.