At the most profitable level of production, a firm's marginal cost will be _____ the market price.
(A) Set by
(B) Less than
(C) Equal to
(D) Greater than
Ans: (C) Equal to
Economics
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The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point
A) VMP > MCL. B) VMP = MCL. C) VMP < MCL. D) VMP = W.
Economics
Based on the above information, what is Willy's "expected loss" due to an accident?
Willy Wonka wants to avoid any accidents of the work floor of his chocolate factory. If an accident does occur, it would cost Willy $500,000 in damages. Also, the probability of an accident is 20%. Pr(Accident)=0.2Pr(Accident)=0.2 A. $20,000 B. $50,000 C. $100,000 D. $125,000
Economics