The general rule for hiring any input (say, labor) in the profit-maximizing amount is MRC = MRP. This rule takes the special form W = MRP (where W is the wage rate) when the:
A. labor supply curve is upsloping.
B. supply of labor is inelastic.
C. firm is hiring labor under purely competitive conditions.
D. firm is hiring labor under imperfectly competitive conditions.
Answer: C
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Which of the following is an example of a positive externality (additional social benefit)?
A. an increase in the value of land you own when a nearby development is completed B. falling property values in a neighborhood where a disreputable nightclub is operating C. the costs paid by a company to build an automated factory D. the higher price you pay when you buy a heavily advertised product
The U.S. provides about _____ percent of the annual membership fees of IMF member countries
a. 5.6 b. 10.2 c. 15.3 d. 17.3 e. 22.4
A characteristic that is important, but not essential to defining a perfectly competitive market is:
A. goods are standardized. B. firms can freely enter and exit the market. C. buyers and sellers are price takers. D. All of these are necessary to define a perfectly competitive market.
When the free rider problem is present in a market:
A. the good is rival in consumption. B. the good will likely be overconsumed. C. what people pay often does not reflect the real value they put on a good. D. the good is easily excludable.