« previous next »

Author Question: In the long run, a competitive firm has a marginal product of labor, MPL = L-1. The output price is ... (Read 34 times)

lak

  • Hero Member
  • *****
  • Posts: 546
on: Jul 1, 2018
In the long run, a competitive firm has a marginal product of labor, MPL = L-1. The output price is 20 per unit and the wage is 7.25 per hour. The long-run labor demand curve for the firm is
 
  A) 20L-0.05.
  B) 7.25L-0.05.
  C) 20L-1.
  D) 7.25L-1.

Question 2

Because of market power, wages are higher under monopsony than under competitive conditions.
 
  Indicate whether the statement is true or false


Pamela.irrgang@yahoo.com

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

False. Because of market power, the monopsonist pays a lower wage than is paid in a competitive market.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

The roles of transpiration, cohesion, adhesion, and tension in long-distance water transport. The roles of transpiration, cohesion, adhesion, and tension in long-distance water transport.
Rivers Are a Product of Their Watersheds Rivers Are a Product of Their Watersheds
Cut view of long bone. Cut view of long bone.
Competitive firms and maximization Competitive firms and maximization
Perform the indicated division (long division polynomials) Perform the indicated division (long division polynomials)
GloFish, marketed as the world’s first GM pet, are a controversial product of genetic engineering GloFish, marketed as the world’s first GM pet, are a controversial product of genetic engineering
Video: Cellular slime mold life cycle Animation

For a complete list of videos, visit our video library