Question

In: Economics

The MRCL, MFCL,  PL, and wage rate all refer to the cost of one more unit of...

The MRCL, MFCL,  PL, and wage rate all refer to the cost of one more unit of labor.

A. True

B. False

Solutions

Expert Solution

B) FALSE

MRPL is the change in the firm’s total revenue resulting from a unit change in the amount of labor used and MRCL is the change in total labor cost resulting from a unit change in the number of units of labor used. Hence for MRCL and MFCL refer to the cost of one more unit of labor

PL can be abbreviated for Price Level or Wage rate (PL).

Price Level is not about one more unit of labor as a price level is the average of current prices across the entire spectrum of goods and services produced in the economy. In a more general sense, price level refers to any static picture of the price of a given good, service or tradable security.

Even the wage rate is amount of base wage paid to a worker per unit of time (as per hour or day) or per unit of output if on piecework, but again it is not about One more unit of Labor, it is about one more unit of output.

So neither the PL nor wage rate is about one more unit of labor.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

17. Marginal social cost is the a. price a consumer pays for one more unit of...
17. Marginal social cost is the a. price a consumer pays for one more unit of a good. b. cost a producer incurs producing one more unit of a good. c. cost of producing one more unit of a good that falls on someone other than the producer. d. sum of the cost a producer incurs from producing one more unit of a good plus the cost of producing one more unit of a good that falls on someone other...
Question 36 At a current wage rate less than the market equilibrium wage rate, Select one:...
Question 36 At a current wage rate less than the market equilibrium wage rate, Select one: a. workers are willing to provide more labor than firms wish to hire. b. there is a shortage of labor. c. there is a surplus of workers, or unemployment. d. firms wish to hire fewer units of labor than workers desire to provide. Question 37 In principle, a tendency for firms to congregate in a single nation to reap trade-cost advantages related to key...
For the Assembly Department, unit materials cost is $4 and unit conversion cost is $8. All...
For the Assembly Department, unit materials cost is $4 and unit conversion cost is $8. All material costs are added at the beginning of the process and conversion costs are applied uniformly throughout the process. If there are 9900 units in ending work in process 65% complete as to conversion costs, the costs to be assigned to the ending inventory are A.$77220. B.$118800. C.$91080. D. $104940.
The following data refer to Bear Company's ending inventory: Item code Quantity Unit Cost Unit Market...
The following data refer to Bear Company's ending inventory: Item code Quantity Unit Cost Unit Market Small 100 $228 $232 Medium 420 152 176 Large 600 168 176 Extra-Large 220 268 256 How much is the inventory if the lower of cost or market rule is applied to each item of inventory? Select one: A. $252,640 B. $243,760 C. $265,440 D. None of the above
Thomas Martin receives an hourly wage rate of $40, with time and a half for all...
Thomas Martin receives an hourly wage rate of $40, with time and a half for all hours worked in excess of 40 hours during a week. Payroll data for the current week are as follows hours worked, 48; federal income tax withheld, $350; social security tax rate, 6.0% and Medicare tax rate, 1.5%. What is the gross pay for Martin? $1, 730 $2, 080 $1, 531 $449
1. Assume that if a firm uses one more unit of one input it will have...
1. Assume that if a firm uses one more unit of one input it will have diminishing marginal returns. If the firm uses one more unit of that one input its total output will decrease. (True or False) 2. When a firm produces 200 units of output its average fixed cost is $200. if its average total cost at this output is $500, what is the firm’s average variable cost at this output? $700 $300 $3.00 None of the answers...
1. If diminishing returns exist, then Each unit produced will cost incrementally more. Each unit produced...
1. If diminishing returns exist, then Each unit produced will cost incrementally more. Each unit produced will cost incrementally less. The total cost curve will be negatively sloped. The total cost curve will be flat. 2. For the perfectly competitive firm, the marginal revenue is always Decreasing. Constant. Increasing. Equal to average total cost. 3. Greater-than-normal profit represents Below-average returns to capital. Exploitation of workers. Payment for entrepreneurship. Explicit costs. 4. A perfectly competitive firm will maximize profits by choosing...
Calculate gross pay for each of the following employees. All are paid an overtime wage rate...
Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1:Anita Workman receives tips from customers as a standard component of her weekly pay. She is paid $2.60/hour by her employer and receives $291 in tips during the most recent 44-hour workweek. Gross...
Calculate gross pay for each of the following employees. All are paid an overtime wage rate...
Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1:Walter Pinkman assembles merchandise and is paid $0.12 for each unit assembled. During the most recent week, he worked 44 hours and assembled 5,602 units. Gross Pay = $ 2:Sidney Darling is a...
refer to the following information and provide the weighted average cost of capital (WACC). Category Rate...
refer to the following information and provide the weighted average cost of capital (WACC). Category Rate (%) Amount ($) Annual Cost Current Liabilities, Except Bank Debt 0%               650,000 Notes Payable to Banks, Short-Term 12%               230,000 Long-Term Debt 8%               245,000                  18,000 Lease Contracts 14%               205,000 Loans from Shareholders 8%            1,200,000 Stockholders' Equity            1,875,000                  12,000 Totals
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT