To answer the question, refer to the following figure, showing the marginal revenue product (MRP) and the average revenue product (ARP) curves of a perfectly competitive firm hiring a single variable input, labor.
If the wage is above ________, the firm will shut down and hire zero workers in the short run.
A. $30
B. $32
C. $34
D. $41
Answer: C
You might also like to view...
In general we may note that inflation:
A. doesn't necessarily harm purchasing power. B. always decreases purchasing power. C. always increases purchasing power. D. should try to be avoided at all costs.
Which of the following is not considered a macro outcome?
A. External shocks such as weather. B. The average price of goods and services. C. The year-to-year expansion in overall productive capacity. D. The level of unemployment.
Which of the following items would be least prudent to purchase on credit
A) a college education B) a vacation C) a house D) an automobile
In which of the following cases would real income rise?
A. Nominal income rises by 8 percent and the price level rises by 10 percent. B. Nominal income rises by 2 percent and the price level remains unchanged. C. Nominal income falls by 4 percent and the price level falls by 2 percent. D. Real income will rise in all of these cases.