Which of the following equations is true of a profit-maximizing firm?
A) Wage = value of worker's marginal product B) Wage = worker's marginal product
C) Wage = worker's total product D) Wage = average product of all workers
A
You might also like to view...
The crowding-out effect refers to
A) government spending crowding out private spending. B) private saving crowding out government saving. C) government investment crowding out private investment. D) private investment crowding out government saving.
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05
If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the second year after an expenditure shock is 1.1, what is the total change in output relative to potential for the second year? A) -1.28% B) -1.73% C) -2.06% D) -5.78%