Suppose a firm hires labor in a competitive labor market. When will hiring more labor increase the firm's profit?
a. When the marginal revenue product of labor exceeds the wage rate.
b. When the marginal product of labor is positive.
c. When the marginal labor cost is falling.
d. When the wage rate is less than the firm's marginal cost of production.
a. When the marginal revenue product of labor exceeds the wage rate.
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Making bread at home would be more efficient than making it in commercial bakeries
A) for people who place a sufficiently high value on home baked bread. B) if the ingredients used to make bread increased sufficiently in price. C) if the price of bread made in commercial bakeries did not reflect the efficiency of bakeries. D) if there were no labor costs in home baked bread.
If the nominal interest rate equals 10 percent and the inflation rate equals 6 percent, what does the real interest rate equal?
What will be an ideal response?
The unemployment rate is the number of
A) people looking for work divided by the population. B) jobless individuals divided by the total labor force. C) jobless people looking for work divided by the population. D) jobless individuals looking for work divided by those employed and unemployed but actively looking.
An increase in price could occur due to a(n)
a. Increase in demand and no change in supply b. Decrease in supply and no change in demand c. An increase in demand and decrease in supply d. All of the above