Author Question: If the market for labor is perfectly competitive, the profit maximizing level of labor occurs where ... (Read 130 times)

cdr_15 · **on:** Jul 1, 2018

If the market for labor is perfectly competitive, the profit maximizing level of labor occurs where

A) MRPL < W (the wage).
B) MRPL = P (the output price).
C) MRPL just exceeds W.
D) MRPL = W.
E) none of the above

Question 2

Suppose that the price of labor (PL) is 10 and the price of capital (PK) is 20. What is the equation of the isocost line corresponding to a total cost of 100?

A) PL + 20PK
B) 100 = 10L + 20K
C) 100 = 30(L+K)
D) 100 + 30 (PL + PK)
E) none of the above