The Acme Company Is a Perfect Competitor in Its Input

question 11

Multiple Choice

The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output:

• A) is $0.10.
• B) is $10.
• C) is $9,000.
• D) cannot be determined without more information.

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Definitions:

Living Standards

A measure of the wealth, comfort, material goods, and necessities available to individuals or societies.

U.S. Investment

The activity of allocating resources, usually in the form of capital or money, into the United States' financial assets or business ventures with the expectation of achieving a profit.

Gross Savings

The total amount saved by an economy before accounting for depreciation.

Dramatically Slowed Down

A significant decrease in the pace or speed at which processes, developments, or activities occur.