The Hiring Rule for the Perfect Competitor in the Labor

question 51

Multiple Choice

The hiring rule for the perfect competitor in the labor market is to choose that amount of labor for which the wage rate is exactly equal to

• A)marginal revenue from the sale of one more unit of output.
• B)the cost of capital.
• C)the value of the marginal product of labor, VMPL.
• D)MC.

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Definitions:

Sample Mean

Mean calculated from data for a sample.

Confidence Interval

A set of values, taken from sampled data, that potentially covers the value of an unknown parameter of the population.

Mean Score

The average value calculated by adding all individual scores and dividing by the number of scores.

Confidence Interval

A collection of values, extracted from sample measurements, likely to harbour the value of an undetected population parameter.