Multiple Choice
Suppose MP = 10/L. If the firm sells its output in a competitive market at a price of $8, how much labour will the firm hire if the wage rate is $5 per unit of labour?
A) 4
B) 6
C) 2
D) 10
Correct Answer:

Verified
Correct Answer:
Verified
Q17: The price of leisure:<br>A)depends on the number
Q18: Investment in training is called:<br>A)human capital.<br>B)foregone income.<br>C)current
Q19: A firm's downward sloping demand for an
Q20: Jennifer has the following utility function: U(C,
Q21: When dealing with the demand for inputs<br>A)substitution
Q23: The marginal factor cost curve is:<br>A)equal to
Q24: If a resource is exhaustible, its supply
Q25: In perfectly competitive input markets<br>A)all units of
Q26: The demand for labor will increase in
Q27: An increase in the interest rate will:<br>A)shift