A profit-maximizing perfectly competitive firm should hire workers up to the point where labor's marginal revenue product equals the wage rate

Which Federal Reserve Bank president is always on the Federal Open Market Committee?

A) New York B) Chicago C) St. Louis D) Boston

The morel is a prized mushroom that is often abundant in the Western United States in years after forest fires. Suppose two companies are buying morels from workers willing to find them. One company offers to pay workers $5.00 per pound, and the other company will pay workers only $4.00 per pound. Economists would say that:

A. the higher-paying company will attract the more creative and innovative pickers and the lower-paying company will attract the others. B. the lower-paying company will attract the more creative and innovative pickers and the higher-paying company will attract the others. C. the company willing to pay only $4.00 has a comparative advantage in selling morels. D. this situation violates the law of one price and is not likely to persist.