A perfectly competitive firm will hire labor as long as the marginal revenue product of labor is

A. zero.
B. less than the going wage.
C. greater than the going wage.
D. equal to the going wage.


Answer: C

Economics

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By hedging a portfolio, a bank manager

A) reduces interest-rate risk. B) increases reinvestment risk. C) increases exchange-rate risk. D) increases the probability of gains.

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Suppose a U.S. citizen invests $1,000 to purchase a one-year Japanese bond that has an interest yield of 10 percent. If the dollar appreciates 20 percent against the Japanese yen by the maturity date, the dollar value of the proceeds is _____

a. $900 b. $1,100 c. $1,300 d. $1,500 e. $1,200

Economics

Which of the following is a similarity between an oligopoly and monopolistic competition? a. Both markets are characterized by mutually interdependent decision making. b. Both markets produce homogeneous products

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Economics