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# Figure 28-10 Labor MR MPP 0 \$3 0 1 \$3 5 2 \$3 6 3 \$3 5 4 \$3 4 5 \$3 3 6.docx

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# Figure 28-10 Labor MR MPP 0 \$3 0 1 \$3 5 2 \$3 6 3 \$3 5 4 \$3 4 5 \$3 3 6.docx

Figure 28-10
Labor
MR
MPP
0
\$3
0
1
\$3
5
2
\$3
6
3
\$3
5
4
\$3
4
5
\$3
3
6
\$3
2
In Figure 28-10, what wage rate would be consistent with a profit-maximizing firm hiring six laborers?
Select one:
a. \$6
b. \$10
c. \$12
d. \$15
In a perfectly competitive resource market, the marginal-factor cost is
Select one:
a. equal to the resource price.
b. less than the resource price.
c. equal to the price of the good being produced.
d. greater than the resource price when the price is falling.
e. Cannot be determined from the information given
Solution
1. C
The average is 12
2. A
In perfectly competitve market the marginal factor cost is equal to the resource price
.

Figure 28-10
Labor
MR
MPP
0
\$3
0
1
\$3
5
2
\$3
6
3
\$3
5
4
\$3
4
5
\$3
3
6
\$3
2
In Figure 28-10, what wage rate would be consistent with a profit-maximizing firm hiring six laborers?
Select one:
a. \$6
b. \$10
c. \$12
d. \$15
In a perfectly competitive resource market, the marginal-factor cost is
Select one:
a. equal to the resource price.
b. less than the resource price.
c. equal to the price of the good being produced.
d. greater than the resource price when the price is falling.
e. Cannot be determined from the information given
Solution
1. C
The average is 12
2. A
In perfectly competitve market the marginal factor cost is equal to the resource price
.

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### Figure 28-10 Labor MR MPP 0 \$3 0 1 \$3 5 2 \$3 6 3 \$3 5 4 \$3 4 5 \$3 3 6.docx

1. 1. Figure 28-10 Labor MR MPP 0 \$3 0 1 \$3 5 2 \$3 6 3 \$3 5 4 \$3 4 5 \$3 3 6
2. 2. \$3 2 In Figure 28-10, what wage rate would be consistent with a profit-maximizing firm hiring six laborers? Select one: a. \$6 b. \$10 c. \$12 d. \$15 In a perfectly competitive resource market, the marginal-factor cost is Select one: a. equal to the resource price. b. less than the resource price. c. equal to the price of the good being produced. d. greater than the resource price when the price is falling. e. Cannot be determined from the information given Labor MR MPP 0 \$3 0 1 \$3 5 2 \$3 6 3 \$3 5 4 \$3 4 5 \$3 3 6 \$3 2
3. 3. Solution 1. C The average is 12 2. A In perfectly competitve market the marginal factor cost is equal to the resource price