Question

Question 13 2.5 points Save Answer A wholmer sols wheat in a perfectly competitive market and hires labor in a perfectly competitive m marginal product of the fifth workers 10 bushes. What would you advise this former to do? et. The market price of what is $2 a bushel the wage rate is $10, the former employs five workers and the Do noting because the wage rate and the marginal product of the last worker hired are equal Raduce m oment because the wage paid is less than the marginal revenue product increase employment because the wage paid is less than the marginal revenue product Reduce the product price so that the wage and marginal Revenue product will be equal

Answer 1

Q13) option C)

MRPL = Price*MPL

= 2*10 = 20

MRP > Wages

So employ more Labor

14) option A)

K rises Productivity of L ,& so MPL rises,

Wages rise

15) option C)

at eqm, MP per unit of price is Equalized across all inputs

16) option C)

Capital goods are beneficial for over their entire life span