To Answer the Question,refer to the Following Figure,showing the Marginal

question 78

Multiple Choice

To answer the question,refer to the following figure,showing the marginal revenue product MRP) and the average revenue product ARP) curves of a perfectly competitive firm hiring a single variable input,labor. If the wage is above $______,the firm will shut down and hire zero workers in the short run.

• A)$41
• B)$30
• C)$34
• D)$32

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit to others, expecting to be repaid, usually with interest.

Farmers

Individuals engaged in agriculture, aiming at producing food and other crops, raising livestock, and managing farm operations.

Railroad Lines

These are networks of tracks along which trains travel, essential for the transportation of goods and passengers over land.

Unprofitably Low Rates

Pricing levels that are so low they do not generate enough revenue to cover costs, leading to financial losses.