A competitive employer is using labor in such an amount that labor's MRP is $10, and its wage rate is $8. This firmMultiple Choiceshould hire more labor because this will increase profits.should hire more labor, although this may either increase or decrease profits.is currently hiring the profit-maximizing amount of labor.Оis selling its product in an imperfectly competitive market. Resource pricing is important becauseMultiple Choiceresource prices are a major determinant of money incomes.resource prices allocate scarce resources among alternative uses.Оresource prices, along with resource productivity, are important to firms in minimizing their costs.ОAll of these choices are correct.

1.Resource pricing is important because it plays a crucial role in:Determining money incomes for…

Answered: A competitive employer is using labor…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 16CQ

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Similar questions

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
. In some ordering problems, like the one for Sam’sBookstore, whenever demand exceeds existing inventory, the excess demand is not lost but is filled byexpedited orders—at a premium cost to the company.Change Sam’s model to reflect this behavior. Assumethat the unit cost of expediting is $40, well above thehighest regular unit cost.
E2 The economic order quantity model’s objective is to determine the optimal quantity to order each time that will minimize the total inventory cost. What assumptions are made in this model?
. If economic profit equals accounting profit, what do implicitcosts equal?
What is the explicit and implicit cost? Can explicit or implicit be used for a business or household?
What is the diforence between accounting profit and economic profi? A. Economic profit subracts both explicit and implicit costs from total revenue, while accounting profit only subtracts explicit costs. B. Accounting profit only subtracts implicit costs from total revenue, while economic profit only subtracts explicit costs. OC Economic profit only subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs.
Dr. D. is a critic of standard microeconomic analysis.In one of his frequent tirades, he was heard tosay, ‘‘Take the argument for upward-sloping,long-run supply curves. This is a circular argumentif I ever heard one. Long-run supply curves aresaid to be upward sloping because input pricesrise when firms hire more of them. And that occursbecause the long-run supply curves for theseinputs are upward sloping. Hence, the argumentboils down to ‘long-run supply curves are upwardsloping because other supply curves are upwardsloping.’ What nonsense!’’ Does Dr. D. have apoint? Explain clearly.
Please no written by hand solution 3) Read the Chicago Tribune article titled “At Amazon’s Monee Warehouse, Robot Co-Workers are the New Normal”. Over the long run, it appears that Amazon is working towards min- imizing its operating costs by reallocating its factors of production away from labor and towards robots (i.e., capital). Using the cost minimization model discussed in class, explain how rising relative wages likely incentive Amazon to invest in robots. 4) All else equal, which is steeper, the demand curve for a normal good or the demand curve for an inferior good? Explain.4 5) Assume that the price elasticity of demand (PED) for a firm’s out is PED = −0.75 and that the price of its output is currently at p = $10. (a) How would this firm’s revenues change if it increased its quantity produced by a little bit? Explain. (b) Instead of increasing its quantity produced, how would this firm’s revenues change if it increased its price a bit? Explain.
Explain
can someone pls explain if marginal product function (i.) and (ii) are either convex or concave? what is their economic implication?
Adam operates a small shop specializing in party favors. He owns the build- ing andsupplies all of his own labor and money capital. Adam incurs no explict rental or wagecost. Before starting his own bussines Adam earned $1,000 per month by renting outthe store and earned $2,500 per month as a store manger for a lrge departmentstore chain. Because Adam use his own money capital, he also sacrificed $1,000 permonth interest earned on U.S government treasury bonds. Adam’s monthly revenuesfrom operating his shop are $10,000 and his total monthly expense for labor andsupplies amounted to $6,000. Calculate Adam’s monthly accounting and economic profits
Please answer fast please arjent help a and b

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