WebIn a competitive labor market, if a firm pays a worker less than that worker's VMP, then in the long run A. the firm will earn positive economic profits. B. competing firms will be able to hire the worker away, driving wages up to VMP. C. the worker will have no incentive to work hard. D. the supply of workers will fall. 6. WebSuppose a worker can produce two widgets per hour and the firm can sell each widget for $4 each. Then the worker is generating $8 per hour in revenues to the firm, and a profit-maximizing employer will pay the worker up to, but no more than, $8 per hour, because that is what the worker is worth to the firm.

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WebSuppose that a firm is the single employer of labor in a market, thus it is a monopsony. If the wage is $9.50 to hire one worker, $10 to hire two workers, and $11.50 to hire three … WebBusiness Economics Complete the following statement about the marginal productivity theory. For a firm that is a factor price taker, _____ , And firms hire the factor quantity at which _____. Thus, it follows that _____. Suppose that Manuel works for Clear Drop Co, a perfectly competitive firm producing water filters. simple way to learn multiplication tables

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WebFind step-by-step solutions and your answer to the following textbook question: Suppose a firm hires labor in a perfectly competitive labor market. If the marginal revenue product is … WebSuppose there is only one employer in a labor market. Because that employer has no direct competition in hiring, if they offer lower wages than would exist in a competitive market, employees will have few options. If they want a job, they must accept the offered wage rate. WebSuppose that a firm begins to hire workers for a newly completed plant with a fixed amount of machinery. As the firm hires additional workers, one would expect the marginal product to. rise initially, but eventually fall. … simple way to make a bow