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

Author Question: In a market economy, differences in incomes: a. reflect the relative scarcity of resources. b. ... (Read 87 times)

asd123

  • Hero Member
  • *****
  • Posts: 557
on: Jun 30, 2018
In a market economy, differences in incomes:
 a. reflect the relative scarcity of resources.
 b. provide individuals with an incentive to supply resources that are valued by others.
  c. determine the income distribution among market participants.
 d. all of the above are correct.

Question 2

How does value of marginal product (VMP) of labor determine the number of workers a competitive firm will hire?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

amandanbreshears

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

A firm's goal is to maximize profits. Hiring an extra person-hour increases the employer's profit as long as VMP, which is an employer's demand curve for labor, exceeds the wage. As the supply curve of labor to a competitive firm is horizontal at the market wage rate, the profit-maximizing amount to hire is given by the point where the VMP is equal to the wage rate.


asd123

  • Member
  • Posts: 557
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

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?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Relative Energy Consumption per Person for Selected Countries Relative Energy Consumption per Person for Selected Countries
This label on a Toyota Camry hybrid shows the relative smog-producing emissions, but this does not ... This label on a Toyota Camry hybrid shows the relative smog-producing emissions, but this does not ...
Selective Resources for Pharmacology Selective Resources for Pharmacology
Outgroup role in relative rate test Outgroup role in relative rate test
Human mtDNA molecule, showing the locations of HVS I and II regions relative to other mtDNA genes Human mtDNA molecule, showing the locations of HVS I and II regions relative to other mtDNA genes
Allelic differences in alcohol metabolism Allelic differences in alcohol metabolism
Video: Febrile Seizure

For a complete list of videos, visit our video library