Refer to the figure above. If the profit-maximizing quantity of labor hired by the firm is 40 hours, the market wage rate must be ________
A) $2 per hour
B) $5 per hour
C) $7 per hour
D) $8 per hour
B
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Unregulated monopolies can often make an economic profit in the long run because
A) they receive government subsidies. B) they have high costs. C) barriers to entry prevent competing firms from entering the market. D) the risks of running a monopoly are high.
In the model of monopolistic competition, an increase in industry output will ________ producers of ________ higher-priced goods and ________ producers of lower-priced goods
A) harm; benefit B) benefit; harm C) harm; harm D) benefit; benefit E) benefit; have no effect on
Disposable income equals national income minus personal taxes
Indicate whether the statement is true or false
Labor unions and minimum wage laws may create ________ unemployment.
A. cyclical B. frictional C. structural D. environmental