The Acme Company is a perfect competitor in its input markets and a monopolist in its output market. Its average product of labor is 30, the marginal product of labor is 20, the price of labor is $20, and the price of the output is $5
For Acme Company, the marginal revenue product of labor A) is $100.
B) is $150.
C) is $400.
D) is $600.
E) cannot be determined with the information provided.
E
Economics
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Economics involves marginal analysis because:
A. most decisions involve changes from the present situation. B. marginal benefits always exceed marginal costs. C. marginal costs always exceed marginal benefits. D. much economic behavior is irrational.
Economics
If the MRP of an acre of land were $1,000 and its rent were $500,
A. more land is being used than should be used. B. exactly the right amount of land is being used. C. not enough land is being used. D. only half as much land is being used as should be used.
Economics