What Two Factors Should You Equate in Deciding How Many

question 43

Multiple Choice

What two factors should you equate in deciding how many workers to employ?

• A)the marginal product of labour and the marginal product of capital
• B)the marginal product of labour and the real wage rate
• C)the marginal product of labour and the real interest rate
• D)the marginal product of capital and the real wage rate

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Definitions:

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new firms to enter a market, including high startup costs, regulatory hurdles, and established competition.

Monopoly

A market structure characterized by a single seller selling a unique product with no close substitutes, leading to significant control over the market price.

Close Substitutes

Products or services that can serve as replacements for each other with minor adjustments, often similar in function or purpose.

Barriers To Entry

Factors that make it difficult for new firms to enter a market, such as high startup costs, complex regulations, or entrenched competitors.