ECON 1 Exam Solution: Human Capital, Marginal Product, Perfect Competition
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If the price of a chair is aed 5, and the labor market for chairs is perfectly competitive, then. Farah will get paid: aed 10, aed 150, aed 250, aed 500. In a competitive market, each worker is paid: less than the value of his marginal product, exactly the value of his marginal product, more than the value of his marginal product, none of the above. Use the following table to answer questions 3 to 5: The marginal product of the 4th worker is: 3, 5, 10, 15. If the price of one unit of output is , then the value of marginal product of labor for the 3rd worker is: , , , . If the wage rate is , how many workers does the firm employ: 2, 3, 4, 5. When deciding how many workers a firm should employ, the firm should consider all of the following except: output, price, cost of machinery, wage rate.
