Question

11. If MPx > MPy, a firm should hire more x and less y.

Group of answer choices

True

False

10.

Unit of Labor	Total Product	Product Price
0	0	$2.20
1	15	2.00
2	28	1.80
3	39	1.60
4	48	1.40
5	55	1.20
6	60	1.10

The data in the table reveal that

Group of answer choices

the firm is selling its product in a purely competitive market.

there is no level of output at which this firm can operate at a profit.

14.

Wage Rate	Quantity of Labor Demanded
$16	800
14	1,000
12	1,200
10	1,600
8	1,800

Refer to the given data. For the $16 to $14 range of wage rates, labor demand is

Group of answer choices

inelastic.

elastic.

perfectly inelastic.

perfectly elastic.

the firm is selling its product in an imperfectly competitive market.

the firm is hiring labor in an imperfectly competitive market.

Answer 1

11.

False

It is the marginal productivity per unit of dollar that is compared to assess whether there should be an increase or decrease in the use of factors of production.

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10.

Firm is selling its product in imperfectly competitive market.

Because, there is a downward sloping demand curve of the product.

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14.

B

Working note:

Elasticity of demand = ((1000-800)/(1000+800)/2) / ((14-16)/(14+16)/2)

Elasticity of demand = -1.67

So, demand is elastic in nature.