A firm faces the following relationship between the real wage it pays and the effort exerted by its workers.
The marginal product of labor for this firm is given by MPN = E (100 - N)/9. The firm will choose to pay a wage such that the effort level is
A. 24.
B. 29.
C. 27.
D. 20.
Answer: C
You might also like to view...
If the government wants to regulate a natural monopoly while ensuring the firm does not earn profits or require subsidies, the government will force the firm to set price equal to
A) average cost. B) marginal cost. C) marginal revenue. D) None of the above.
Behavioral economics
a. is a subfield of psychology that has partially replaced traditional economic analysis b. is a subfield of economics that explains how people behavior c. is a subfield of economics that incorporates insights from psychology and sociology d. provides support for the traditional economic theory of rational utility maximization e. predicts that demand curves slope upward
The main reason why one nation trades with another is to
a. save its natural resources from rapid depletion. b. exploit the advantages of specialization. c. eliminate the danger of retaliation from other nations. d. improve political alliances.
The immediate effect of a member bank's sale of U.S. government securities to the Fed is
a. an increase in that bank's required reserves. b. a decrease in that bank's required reserves. c. an increase in that bank's excess reserves. d. a decrease in that bank's excess reserves.