True/False
Your boss is trying to decide whether to buy out a rival company and asks for your advice.The boss says that the rival will be bought if there is evidence that the rival is operating inefficiently.(Your company will then improve its efficiency and increase profits.) The rival will not be bought if there is evidence that the rival is already operating efficiently.Your boss gives you the following data on the rival's operations: The average product of labor equals 4, the marginal product of labor equals 10, the wage equals $20, and the price of output equals $5.Based on this information, you should tell your boss to buy the rival.False
Correct Answer:
Verified
Correct Answer:
Verified
Q31: Employers may be able to discriminate on
Q33: Suppose the factor market for computer engineers
Q35: A profit-maximizing producer employs each factor of
Q37: An example of the substitution effect dominating
Q38: If a perfectly competitive firm chooses the
Q39: Phil's Copy Studio pays its workers $60
Q41: In terms of contribution to total U.S.income,
Q52: A backward-bending supply curve of labor shows
Q190: Use the following to answer questions: <img
Q297: The marginal product times product price equals