Based on the Above Calculations, What Is the Entrepreneur's Best

question 88

Multiple Choice

Based on the above calculations, what is the entrepreneur's best option?

• A)(S)he should choose site #1.
• B)(S)he should choose site #2.
• C)Neither site meets minimum criteria of $158 per square foot.
• D)Either site will work well since both meet minimum criteria of $158 per square foot.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to influence the market price.

Equilibrium Wage

The wage rate at which the quantity of labor demanded equals the quantity of labor supplied.

Equilibrium Wage

The compensation rate at which labor demand from businesses meets labor supply from employees.

Wage Rate

The amount of money paid to a worker per unit of time, usually expressed per hour or year.