Assuming pure competition, which of the following are equivalents?

A. MRP L /P L = MRP C /P C and P x = 1/MC.
B. MRP L /P L = MRP C /P C and P x = AVC.
C. P x = MC and MRP L /P L = MRP C /P C = 1.
D. P x = MC and MP L /P L = MP C /P C


Answer: C

Economics

You might also like to view...

The size of the labor force is

A) equal to the size of the population. B) equal to the working-age population. C) less than the number of employed workers if the number of unemployed workers is small enough. D) less than the number of unemployed workers if the number of employed workers is small enough. E) greater than the number of employed workers as long as there are some unemployed workers.

Economics

How does a production quota influence farm prices and output?

What will be an ideal response?

Economics

Which of the following policies would reduce structural unemployment?

A) implementing an unemployment insurance policy B) a job retraining program C) building an online job database that helps workers find jobs D) an increase in the minimum wage

Economics

Price elasticity of demand is defined as

a. slope divided by price. b. percentage change in price divided by percentage change in quantity demanded. c. percentage change in quantity demanded divided by percentage change in price. d. the inverse of the price elasticity of supply.

Economics