Profit-maximizing employment is the quantity of labor at which
A) marginal revenue product is equal to marginal factor cost.
B) marginal revenue product is equal to product price.
C) marginal factor cost is equal to marginal revenue.
D) marginal factor product is equal to product price.
A
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A reduction in wage is most likely to:
A) increase worker productivity. B) increase quantity of labor supplied. C) decrease quantity demanded of labor. D) lower worker productivity.
If increases in government spending lead to inflation, the value of the multiplier is reduced
a. True b. False Indicate whether the statement is true or false
If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold. b. depreciate the dollar and increase the price of gold. c. depreciate the dollar and decrease the price of gold. d. appreciate the dollar and increase the price of gold.
Suppose U.S. peanut butter producers are facing increased foreign competition. Which argument is least likely to be used by the U.S. firms' lobbyists to urge legislation to restrict imports of peanut butter?
A) Peanut butter is important in military rations, so we cannot risk losing our supply of it. B) Foreign peanut butter is made by virtual slave labor, working in horrible conditions. C) Economic profits of the U.S. firms are already at a very low level. D) Thousands of U.S. peanut farmers face hard times without this protection against imports.