The marginal product of labor (measured in units of output) for Relient Corp. is given by MPN = A(200 - N)where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $30?
A. 185
B. 195
C. 170
D. 190
Answer: B
You might also like to view...
Variability in exchange rates of currencies used in international trade
A. causes a complete breakdown of trade. B. renders the theory of gains from trade null in practice. C. brings with it a host of complications in trade policy. D. has no impact on trade.
The argument that an increase in aggregate demand, as a result of an increase in government purchases, will be offset by increases in savings (less current consumer spending) for future taxes is called:
a. the crowding out effect b. the Ricardian equivalence theorem c. the budget deficit effect d. the budget surplus effect
A market in which national currencies are traded by households, firms and governments, is referred to as a(n)
A) foreign exchange market. B) fed funds market. C) international reserves market. D) gold certificate market.
Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions. True or Flase
A. True B. False