Author Question: Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the ... (Read 109 times)

09madisonrousseau09 · **on:** Jun 29, 2018

Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is 6 and the marginal product of the last unit of labor hired by the firm is 2 units, the market wage rate must be:

A) 3.
B) 6.
C) 12.
D) 18.

Question 2

At all the points above the midpoint on a linear demand curve, the value of price elasticity of demand is:

A) equal to one.
B) zero.
C) greater than one.
D) less than one.