A perfectly competitive firm should hire an additional worker only if а. Total revenue is less than total cost. b. The worker's marginal revenue product is less than the wage rate. The worker's marginal product falls. the worker's marginal product rises. the worker's marginal revenue product exceeds the wage rate. с. d. е.

A perfectly competitive firm should hire an additional worker only if а. Total revenue is less than total cost. b. The worker's marginal revenue product is less than the wage rate. The worker's marginal product falls. the worker's marginal product rises. the worker's marginal revenue product exceeds the wage rate. с. d. е.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A perfectly competitive firm's production function is Q=8LK where Q is the amount produced, L is the amount of labour hired and Kis the amount of capital used. P is the price that the firm gets for its product. What is the marginal revenue product of labour? PL 8L 8PK 16PK
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economics question. answer G
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Output (Concession Stand Items) Number of Workers Employed Per day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 $2,000 $8.00 100 2 $120 $2,000 $8.00 400 4 $120 $2,000 $8.00
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economics question. answer A
In the short run, the owner of a firm should continue to hire additional units of labor until: a. the price of the product is equal to the wage rate divided by the marginal product of labor. b. the wage rate is equal to the price of the product multiplied by the marginal product of labor. c. the marginal product of labor is equal to the wage rate divided by the product price. d. Both a and c are correct. e. All of the above are correct.