Suppose That a Firm Hiring Labor in a Perfectly Competitive

question 144

Multiple Choice

Suppose that a firm hiring labor in a perfectly competitive factor market increases the quantity of labor from 20 workers to 21 workers.If the marginal factor cost for the twenty-first worker is $10, the market wage is:

• A) $10.
• B) $11.
• C) $200.
• D) $210.

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Definitions:

Visual Mnemonics

Memory aids that use vivid imagery to link information for easier recall.

Allan Paivio

A psychologist best known for his dual-coding theory, which posits that visual and verbal information are processed and stored differently in the memory.

Identifies

Recognizes, determines, or establishes the identity or essential qualities of something.

Serial-Position Effect

The tendency to recall the first and last items in a list more easily than those in the middle.