XYZ Co operates in a competitive market. Its marginal product of labor is 1/L, and it takes the wage and price as given. Derive the firm's short-run demand for labor as a function of w and p. How much labor will the firm hire if w = 2 and p = 10?
What will be an ideal response?
Setting w = p ? MPL yields w = p/L or L = p/w. At w = 2 and p = 10, the firm hires 5 units of labor.
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A) The first household B) The second household C) The third household D) The fourth household
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a. use to buy goods and services b. save in an interest bearing account c. invest in shares of stock d. allocate to food and other necessities
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A) At $250, the industry-wide marginal benefit from advertising is 4 hours.
B) The industry-wide marginal benefit from 1 hour of advertising is $300.
C) The industry-wide marginal benefit from 1 hour of advertising is $550.
D) None of the above statements is correct.
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a. structural unemployment b. educated unemployment c. cyclical unemployment d. frictional unemployment e. underemployment