If Sam decides to work, his
A) reservation wage is greater than his wage rate.
B) reservation wage is less than his wage rate.
C) value of marginal product is greater than his wage rate.
D) value of marginal product equals his wage rate.
B
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Which of the following correctly identifies the difference between the demand for labor and the demand for final goods?
A) The demand for labor is fixed over time, whereas the demand for final goods changes according to changes in tastes and preferences. B) The demand for final goods is fixed over time, whereas the demand for labor changes according to the changes in tastes and preferences. C) The demand for final goods is derived from the demand for labor, whereas the demand for labor is independent of the demand for final goods. D) The demand for labor is derived from the demand for final goods, whereas the demand for final goods is independent of the demand for labor.
Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $50, how many hats will be produced?
A) 0 B) 1 C) 2 D) 4