Describe the decision for a perfectly competitive employer in determining the profit maximizing quantity of labor to employ.
What will be an ideal response?
The profit maximizing quantity of labor to employ exists at that quantity where the marginal revenue product of labor (MRP) equals the wage rate (W). The MRP equals the marginal product of labor multiplied by the price of the output produced. This information as well as the wage is required to decide the optimal number of workers to employ. If the MRP > W then employ more workers until they're equal.
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Real GDP is most commonly used to monitor short-run changes in
a) economic activity. b) the rate at which a person can trade the currency of one country for the currency of another. c) the income distribution over time. d) the price index from the preceding period.
Basic research: a. usually has a larger immediate payoff than applied research
b. is more practical than applied research. c. is the search for general knowledge without a specific product or procedure in mind. d. is research done by a firm to market a good. e. is research done by a firm during the production of a good.