A competitive employer should hire additional labor as long as
A. the MRP exceeds the wage rate.
B. average product exceeds MP.
C. the wage rate is less than MP.
D. MC exceeds MR.
Answer: A
Economics
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The supply curve of truck drivers is upward sloping and demand curve is downward sloping. A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed
a. decrease; decrease b. decrease; increase c. increase; decrease d. increase; increase
Economics
A reduction in workers' marginal productivity would result in:
A. a reduction in the equilibrium wage rate. B. a decrease in labor supply. C. an increase in labor demand. D. an increase in equilibrium employment level.
Economics