Given that the market wage rate is $50 and both the labor and the goods market are perfectly competitive, a profit-maximizing firm should hire an additional worker if:
A) the marginal product of the worker is 50 units.
B) the value of marginal product of the worker is at least $50.
C) the marginal product of the worker is less than 50 units.
D) the value of marginal product of the worker is less than $50.
B
Economics
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A tax equal to the external marginal cost of an activity yields the efficient level of production because the tax
A) achieves the competitive equilibrium. B) forces producers to face all costs of production including the external cost. C) ensures greater profits for the firm. D) eliminates all pollution.
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A monopoly:
A. is a price taker. B. faces competition from other firms producing close substitutes. C. restricts its output. D. sets a low price by controlling the level of output.
Economics