Economics Homework Help

Question 48

When a firm hires 10 units of labor, 20 pens are produced. When it hires

another unit of labor, the total output increases to 23 pens. If the price of one pen is $2, the value of the marginal product of the eleventh unit of labor is ________.

$6

$4

$2

$1.50

If the marginal product of a worker is 10 units and each unit of the good is sold for $5, the value of the marginal product of the worker is ________.

$50

$2

$10

$5

If the value of the marginal product of a worker is $20 and the market price of the good she produces is $5, her marginal product is ________.

10 units

25 units

4 units

100 units

The profit-maximizing rule for a competitive firm is to hire labor until ________.

Marginal revenue = Wage

Price = Wage

Marginal product of labor = Wage

Value of marginal product of labor = Wage

A socially optimal price maximizes ________.

producer surplus and minimizes consumer surplus

deadweight loss

consumer surplus and minimizes producer surplus

total surplus