A firm hires labor up to the point where the
A) real wage rate equals the nominal wage rate.
B) real wage rate exceeds the nominal wage rate.
C) additional hour of labor produces extra output that equals the real wage rate.
D) additional hour of labor produces extra output that equals the nominal wage rate.
E) firm can sell the extra output.
C
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The opportunity cost of watching television is:
a. all of the alternative programs that appear on other stations. b. zero because there is no money expenditure involved. c. the alternative use of the time foregone by watching the program. d. zero if it benefits you.
In monopolistic competition as well as in monopoly,
a. price exceeds marginal revenue for each firm. b. profit is zero in a long-run equilibrium for each firm. c. entry and exit by firms are unrestricted. d. there are at most a few firms in each market.