If the MRP of labor in a firm is $67, and the MLC equals $56, what would you advise the firm to do?
a. Stay at its current output level.
b. Hire additional workers.
c. Raise prices.
d. Reduce employment.
e. Reduce the wage rate.
B
You might also like to view...
If a monopolist is forced to set price equal to average total cost, economic profit
a. will be negative, and the monopolist may go out of business b. will be zero c. will be positive d. will be negative, and the firm will stay in business if there are significant fixed costs e. may be positive, negative, or zero
Open market operations generally involve the purchase and sales of
a. government securities. b. stocks and bonds. c. coins and currency. d. Federal Reserve notes.
Using the UIP equation, equilibrium in the short run occurs when
a) arbitrage is possible b) the spot rate is such that foreign and domestic investment returns are equalized c) the spot rate and forward rate are equalized d) foreign interest rates and domestic interest rates are equalized
Which of the following government agencies enforces social regulation?
A. Environmental Protection Agency B. Federal Reserve C. Federal Deposit Insurance Corporation D. Securities and Exchange Commission