Author Question: Under perfect competition, the equilibrium price of labor used to produce cloth will be equal to ... (Read 59 times)

mckennatimberlake · **on:** Jun 30, 2018

Under perfect competition, the equilibrium price of labor used to produce cloth will be equal to

A) the marginal product of labor in the production of cloth times the price of cloth.
B) the average product of labor in the production of cloth times the price of cloth.
C) the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth. to the price of food.
D) the slope of the production possibility frontier.
E) the price of cloth divided by the marginal product of labor in the production of cloth.

Question 2

Refer to the figure above. A tariff of ________ would be purely protective.

A) 0
B) 5
C) 8
D) 10