Suppose the marginal product of labor equals 1/L. If the firm can sell its output for $10 per unit, and the wage is $1 per unit, how many units of labor will the firm hire?

Which of the following factors is associated with products with a highly price elastic demand?

a. Few close substitutes. b. A very short time period for consumers to respond to price changes. c. Many very close substitutes. d. A per unit price that is only a very small portion of most peoples' budgets.

When the firm is able to perfectly price discriminate, each unit is sold at its: a. peak load price

b. reservation price. c. cost price. d. market price.