According to economic theory, the real wage should
a. be greater than the price of the product produced.
b. equal the marginal physical product of labor.
c. be less than the marginal product of capital.
d. decline as productivity rises.
b. equal the marginal physical product of labor.
.
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The above figure shows the costs at Barney's Bagel Bakery. For which of the following levels of output does the average product of labor exceed the marginal product of labor?
A) at 1000 bagels daily B) at 2000 bagels daily C) at 3000 bagels daily D) all of the above
A change in the price of important inputs will change the quantity supplied but will not shift the supply curve
a. True b. False Indicate whether the statement is true or false
Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company’s hourly output varies with the number of workers hired, as shown in the table. Workers Pages/hour 0 0 1 40 2 75 3 105 4 125 5 140 6 150 7 155 If each page sells for $2 and the market wage is $15 per hour, then this firm will hire ______ workers per hour.
a. 4 b. 5 c. 6 d. 7
James is a resident of the U.S. and has accrued capital gains on an asset. If James' heirs hold the asset at the time of his death, which of the following is true?
A. His heirs will have to pay tax on the accrual of the capital gain. B. His heirs can sell the asset and its gains tax free. C. The purchase price of the asset will equal the value of the asset on the day James died. D. The purchase price of the asset will be the difference between the value of the asset and the amount of tax payable.