Suppose MP = 10/L

question 22

Multiple Choice

Suppose MP = 10/L. If the firm sells its output in a competitive market at a price of $8, how much labour will the firm hire if the wage rate is $5 per unit of labour?

• A)4
• B)6
• C)2
• D)10

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Definitions:

IRS Form

Official documents issued by the Internal Revenue Service for taxpayers to report financial information, file taxes, or claim deductions.

Delegation

A contracting party’s (a delegator’s) transfer of his or her duty to perform to a third party who is not part of the original contract (a delegatee).

Personal Services

Services provided by individuals based on their unique skills or talents, often involving physical or mental efforts rather than producing goods.

Delegatee

A third party who is not part of the original contract but to whom duties to perform are transferred by one of the contracting parties (a delegator).