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 74 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
Excellent

Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Natural Resources and Industry Natural Resources and Industry
Plan of Trajan's Forum and Market "خطة منتدى ترجان والسوق" Plan of Trajan's Forum and Market "خطة منتدى ترجان والسوق"
Resources from Rocks and Minerals Resources from Rocks and Minerals
Differences in yield between two wheat varieties at different soil fertility levels Differences in yield between two wheat varieties at different soil fertility levels
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Video: Digestive System Animation

For a complete list of videos, visit our video library