Using Figure 10.2 determine the number of workers that a representative firm would wish to hire. Explain your answer
What will be an ideal response?
A competitive firm using only one variable factor of production will use that factor as long as its marginal revenue product exceeds its unit cost. A perfectly competitive firm will hire labor as long as MRPL is greater than the going wage, W*. The hypothetical firm will demand 2100 units of labor.
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The mean household income is
A) the income that separates households into two equal groups. B) the most common household income. C) the percentage of total income received by the richest 20 percent of households. D) the average household income.
With the federal funds rate near zero and the economy still struggling, In response to already low interest rates doing little to stimulate the economy, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep
interest rates low. This policy is known as A) quantitative easing. B) securities-bubble deflating. C) contractionary monetary policy. D) inflation targeting.