What is the general rule for hiring for a perfectly competitive firm? Show it on a graph. What is the demand curve for labor on the graph? Explain
What will be an ideal response?
The firm hires workers up to the point at which the additional of hiring the last worker is equal to the additional revenue generated by that worker. In the above figure, the supply curve of labor is horizontal at the market wage W, so the additional cost of hiring a worker is W. The additional revenue is the MRP, so the firm hires L workers. The MRP curve is the firm's demand curve since it indicates the maximum wage that the firm is willing to pay for each worker it wishes to hire.
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When you accumulate more money,
A) the interest rate you are paid on your currency increases. B) the opportunity cost of holding money decreases. C) your marginal tax rate falls. D) the marginal benefit of holding money decreases. E) you earn a lower rate of interest on your checkable deposit.
Which of the following situations is least likely to involve mutual interdependence?
A) Canada is thinking about banning all imported beef from the United States. B) Octavia is thinking about trading in her Toyota Prius for a BMW 220i. C) Walmart is considering moving up the start-time for its Black Friday sales to 12:01 AM on Thanksgiving day. D) McDonald's is thinking about lowering all its menu prices by 50 percent.