Under Perfect Competition, the Equilibrium Price of Labor Used to Produce

question 1

Multiple Choice

Under perfect competition, the equilibrium price of labor used to produce cloth will be equal to

• A) the marginal product of labor in the production of cloth times the price of cloth.
• B) the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth to the price of food.
• C) the slope of the production possibility frontier.
• D) the average product of labor in the production of cloth times the price of cloth.
• E) the price of cloth divided by the marginal product of labor in the production of cloth.

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Definitions:

Ribosomal RNA

A molecular component of ribosomes, essential for protein synthesis in all living organisms, playing a catalytic and structural role in ribosomes.

Structural RNA

RNA molecules that are not translated into protein but form an integral part of cellular structures like ribosomes.

Ribosomes

Cellular organelles that serve as the site of protein synthesis, reading mRNA and linking amino acids together.

Interphase

The phase of the cell cycle during which a cell grows, duplicates its DNA, and prepares for division.