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 97 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
Wow, this really help

dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

The central dogma of genetics at the molecular level. The central dogma of genetics at the molecular level.
The medical assistant is measuring the urine output from a patient who has an indwelling Foley ... The medical assistant is measuring the urine output from a patient who has an indwelling Foley ...
Right-hand Rule Right-hand Rule
How to use L’Hospital’s Rule to find the limit of a function (Part 3) How to use L’Hospital’s Rule to find the limit of a function (Part 3)
People using walkers typically have a high level of mobility impairment. People using walkers typically have a high level of mobility impairment.
Normal change in sea level Normal change in sea level
Video: How to find out if a population is evolving?

For a complete list of videos, visit our video library