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 67 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
Thanks for the timely response, appreciate it

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Single-gene inheritance tracked at the DNA level Single-gene inheritance tracked at the DNA level
Chargaff's Rule Chargaff's Rule
The output on this alternator is printed on a label. The output on this alternator is printed on a label.
Kyoto Protocol encourages industry to innovate and reduce the level of emissions Kyoto Protocol encourages industry to innovate and reduce the level of emissions
The gap between the projected level of greenhouse gas emissions The gap between the projected level of greenhouse gas emissions
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Video: Introduction to Cystic Fibrosis

For a complete list of videos, visit our video library