A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm
A. should hire more labor because this will increase profits.
B. is currently hiring the profit-maximizing amount of labor.
C. should hire more labor, although this may either increase or decrease profits.
D. is selling its product in an imperfectly competitive market.
Answer: A
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. If a firms fixed costs increase from $2,000 to $3,000, then its marginal cost is $1,000. 2. If a firm can sell one more unit of its product for $7 and the marginal cost of producing that one more unit is only $5, then it should definitely produce and sell one more unit.
Which of the following is not a power of the Federal Reserve System?
a. Setting the prime interest rate b. Issuing Federal Reserve notes c. Buying and selling U.S. government securities d. Extending loans to member banks e. Clearing checks
Which of the following equations is equivalent to the equation S - NX = I?
A. S - I = KI B. S + I = NX - KI C. S + KI = I D. S - KI = NX
One of the primary achievements of the Uruguay Round of GATT negotiations was the:
A. Elimination of import quotas B. Creation of a worldwide free trade zone C. Establishment of the World Trade Organization (WTO) D. Establishment of equal, nondiscriminatory treatment for all members