Market power in the output market

The profit-maximizing firm which is perfectly competitive in the resource market however which consists of market power in the output market will hire the labor at a point where: (1) VMP = MRP = MFC = w. (2) VMP>MRP=MFC=w. (3) VMP=MRP=MFC>w. (4) VMP>MRP=MFC>w.

Can someone please help me in finding out the accurate answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Wage rate in equilibrium for monopsony

Marginal revenue product of the labor surpasses the: (i) Additional revenue generated by each extra unit of labor. (ii) Value of marginal product of labor merely for the competitive sellers of output. (iii) Average fixed cost for natural monopoly. (iv

Q : Definition of Economic Profit To assert

To assert that a firm made exactly zero economic profits as well signifies that it made: (i) Zero accounting profits. (ii) Normal economic profits. (iii) Negative accounting profits. (iv) No profits at all. Choose the right answer

Q : Structure-conduct-performance From

From roughly 1890 till 1970 year, the “structure-conduct-performance paradigm” controlled theories regarding how firms behave in various types of markets. The term “structure” in this expression refers to such

Q : Short run market supply curve for a good

A short run market supply curve for a good manufactured within a purely competitive industry is derived through: (w) vertically summing the marginal cost curves above the AVC curves for all firms which may potentially enter the industry. (x) adding to

Q : Incentives given by higher interest rate

Higher interest rates give incentives for: (w) a corporation to build a new plant. (x) a family to save more. (y) a family to buy a new house. (z) automakers to produce more new cars. Please choose the right answer

Q : Surviving for maximum profits in

Supposing that the competitive firms should seek the maximum profits to survive signifies that: (1) Firm do not make trial-and-error decisions. (2) Each and every firm always seeks the maximum gain and nothing else. (3) Competition is very profitable.

Q : Determine annual interest rate If all

If all US Treasury bonds are perpetuities that annually pay the sum of one thousand and 00/100 dollars [$1000] each year, always, to the holder of this bond starting one year from today and if the current market price of such bond wer

Q : Calculation of market demand To compute

To compute the market demand for air-filled mattresses, add up the: (i) Amounts demanded at each and every price. (ii) Amounts supplied at each and every price. (iii) Demand prices at each and every quantity. (iv) Supply prices at each and every quant

Q : Define Invisible items Invisible items

Invisible items: All kinds of services that are rendered to or obtained from abroad are termed as invisible items. Such are invisible as these are not made up of any matter or material. The record of such items is not obtainable with the ports. Illust

Q : Average retail price and Consumer Price

Answer the question based on given table of average retail price of milk and the Consumer Price Index from the year 1980 to 1998.

Discover Q & A

Leading Solution Library

Avail More Than 1445039 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1930501
Asked

3,689

Active Tutors

1445039

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment