If a firm is a price taker in both the labor market and the output market, it will
A) earn zero economic profit in the short run.
B) hire labor until the marginal product of labor equals zero.
C) hire labor until the marginal revenue product equals the output price.
D) hire labor until the marginal revenue product equals the wage rate.
D
Economics
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Figure 10-18
As shown in , the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD1 to AD2, is
a.
E1.
b.
E2.
c.
E3.
d.
unable to be determined.
Economics
The emphasis on the importance of advances and dissemination of knowledge is a cornerstone of the
A. Logistics development theory. B. Neo-Keynesian school. C. Malthusian school. D. New growth theory.
Economics