This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The profit-maximizing rule for a perfectly competitive firm when choosing its level of output is to ... (Read 105 times)

acc299

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
The profit-maximizing rule for a perfectly competitive firm when choosing its level of output is to produce where price is equal to marginal cost.
 
  The profit-maximizing rule for a firm hiring labor in a perfectly competitive labor market is to hire workers up to the point where the marginal revenue product equal to the market wage. How are these two rules related to one another?

Question 2

Under the Bretton Woods system, central bankers could obtain foreign currency loans from the
 
  A) Bank of England. B) U.S. Treasury Department.
  C) International Monetary Fund. D) World Trade Organization.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ecabral0

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 29, 2018
Answer to Question 1

In both cases, the firm is comparing the cost of production with the potential revenues from the sale of the product at the margin. In the first (P=MC), the firm is comparing the price of the output with the cost of production directly. In the second (W=MRP), information on output price is included in marginal revenue product and the cost of production is represented by the wage paid to labor.

Answer to Question 2

C


acc299

  • Member
  • Posts: 569
Reply 2 on: Jun 29, 2018
:D TYSM

ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Eye ball perfectly labelled (map) Eye ball perfectly labelled (map)
John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
The fuel level must be above 15% and below 85% before the EVAP monitor will run on most vehicles. The fuel level must be above 15% and below 85% before the EVAP monitor will run on most vehicles.
How to use L'Hospital's Rule to find the limit of a function (Part 2) How to use L'Hospital's Rule to find the limit of a function (Part 2)
Management Information Systems: Managing the Digital Firm, 15th Edition Management Information Systems: Managing the Digital Firm, 15th Edition
Rising Sea Level Rising Sea Level
Video: Interview with Person who has Panic Attacks

For a complete list of videos, visit our video library