C of declining mrc d each employer is a wage taker 21

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C. of declining MRC. D. each employer is a "wage taker." 21. A firm operating in a purely competitive resource market faces a resource supply curve that is: A. perfectly inelastic. B. perfectly elastic. C. highly inelastic. D. highly elastic. 22. A firm that is hiring labor in a purely competitive labor market and selling its product in a purely competitive product market will maximize its profit by hiring labor until: A. marginal revenue product is zero. B. marginal revenue product exceeds marginal resource (labor) cost by the greatest amount. C. marginal resource cost is zero. D. marginal revenue product equals marginal resource (labor) cost. 23. A profit-maximizing firm will: A. expand employment if marginal revenue product exceeds marginal resource cost. B. reduce employment if marginal revenue product exceeds marginal resource cost. C. expand employment if marginal revenue product equals marginal resource cost. D. reduce employment if marginal revenue product equals marginal resource cost. 24. A profit-maximizing firm will: A. expand employment if marginal revenue product equals marginal resource cost. B. reduce employment if marginal revenue product equals marginal resource cost. C. reduce employment if marginal revenue product is less than marginal resource cost. D. expand employment if marginal revenue product is less than marginal resource cost. 25. A firm hiring labor in a perfectly competitive labor market faces a: A. downward sloping labor supply curve and upward sloping labor demand curve. B. upward sloping labor supply curve and downward sloping labor demand curve. C. upward sloping labor supply curve and horizontal labor demand curve. D. horizontal labor supply curve and downward sloping labor demand curve. 26. Which of the following describes the equilibrium condition in a purely competitive labor market? A. MRP = Wage Rate B. MRP > Wage Rate C. Wage Rate > MRC D. Wage Rate < MRC
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27. Which of the following describes a purely competitive labor market? A. MRP < Wage Rate B. MRP > Wage Rate C. Wage Rate = MRC D. Wage Rate < MRC 28. Refer to the above data. If there is neither a union nor a minimum wage, we can conclude that this firm: A. "purchases" labor in purely competitive labor market. B. is a monopsonist. C. faces a perfectly inelastic labor supply curve. D. has a perfectly elastic labor demand curve. 29. Refer to the above data. In maximizing its profit, this firm will employ: A. 2 units of labor. B. 3 units of labor. C. 4 units of labor. D. 5 units of labor. 30. Refer to the above data. At the profit maximizing level of employment, this firm's: A. MRP will exceed its MRC. B. MRP will equal its MRC. C. MRP will be less than its MRC. D. MRP will be zero.
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C of declining MRC D each employer is a wage taker 21 A...

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