Amos is a baker in Tucson.Which of the following statements is correct?
A) The wage needed to keep Amos in the bakery industry in Tucson in the long run is lower than the wage needed to keep him in the industry in the short run.
B) The costs of entering the bakery industry in Tucson are sunk costs and therefore those costs shouldn't be a consideration in Amos's decision to stay in the industry.
C) The wage needed to keep Amos in the bakery industry in Tucson in the short run is lower than the wage needed to keep him in the industry in the long run.
D) The wage needed to keep Amos in the bakery industry in Tucson in the long run is not important -- only the short-run wages are relevant.
E) The costs of entering the bakery industry in Tucson are sunk costs and therefore those costs should be considered in Amos's decision to stay in the industry.
Correct Answer:
Verified
Q72: An increasing marginal product of labor would
Q73: Q74: The marginal approach to profit Q75: The presence of diminishing marginal returns to Q76: If a firm is experiencing diminishing marginal Q78: The term marginal revenue product (MRP)refers to Q79: For a firm producing in a perfectly Q80: The marginal revenue product (MRP)of labor is Q81: A firm can maximize profit by hiring Q82: The marginal revenue product of labor
A)says that a
A)increases as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents