Refer to the above table. The marginal factor cost of labor is $200. To get the firm to hire 8 workers, the
A) firm must be able to reduce wages below the marginal factor cost.
B) price of the good must be $8.
C) eighth worker must be at least as productive as the seventh worker was.
D) wage rate must be a fraction of the marginal factor cost of labor.
B
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If the world real interest rate were 6% and the domestic real interest rate in Denmark was 9%, borrowers in Denmark would borrow at the rate of ________ and lenders in Denmark would lend at the rate of ________
A) 6%; 6% B) 6%; 9% C) 9%; 6% D) 9%; 9%
During the post war period,
a. an economic slowdown occurred immediately following the Armistice. b. a vigorous boom began in 1919. c. the Federal Reserve followed a policy of keeping its discount rate below market rates. d. All of the above are correct. e. Only b and c are correct.
Economic profits and the performance of stock
A) are independent of each other. B) are negatively related. C) are positively related. D) are positively related only during downturns in the business cycle.
Which of the following must occur to sustain economic growth in the long run?
A) technological progress B) capital accumulation C) a higher saving rate D) all of the above