A competitive employer should hire additional labor as long as:
A. the MRP exceeds the wage rate.
B. the wage rate is less than MP.
C. average product exceeds MP.
D. MC exceeds MR.
Answer: A
You might also like to view...
An increase in aggregate demand is shown by a
A) rightward shift of the AD curve. B) movement upward along the AD curve. C) movement downward along the AD curve. D) leftward shift of the AD curve.
In a competitive market, a. demand will always reflect all spillover costs
b. demand will always reflect all spillover benefits. c. supply will always reflect all spillover costs. d. none of the above are true.
If the price of housing (which accounts for 40 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods rises by 27 percent, by how much will the CPI rise?
A. 234 percent B. 10 percent C. 27 percent D. 20 percent
Refer to the graph below. When total revenue falls as output expands, marginal revenue is:
The following graph shows a total revenue curve for a monopolist.
A. Positive
B. Negative
C. Zero
D. Greater than demand at that output level