--%>

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.

   Related Questions in Microeconomics

  • Q : Excess demand in macro economics What

    What is meant by Excess demand in macro economics: In macro economics, if aggregate demand is greater than aggregate supply at full employment level, then there is excess demand.

  • Q : Numerical problem on Relative Prices

    When the market price of a gallon of gas is similar as the cost of 4 pineapples in dollars, the relative price of the pineapple is: (i) 1/4 of a gallon of gas. (ii) 25 cents. (iii) 4 gallons of gas. (iv) $4.00. Can someone please h

  • Q : Long run supply Illustrate and explain

    Illustrate and explain using diagrams, the difference between long run supply in a constant cost individual firm and industry and an increasing cost firm and industry.

  • Q : Characteristic of a purely competitive

    A purely competitive firm: (w) faces a perfectly inelastic demand curve. (x) sets its own price. (y) is a price taker. (z) sells a differentiated product. Can someone explain/help me with best solution about proble

  • Q : Problem on Equilibrium price What

    What happens to equilibrium price if increase in demand is equivalent to increase in supply? Answer: In case of equivalent increase in demand and supply the equilib

  • Q : When is the DVD sale increased most

    DVD sales are most probably to rise over the long run when the: (w) supply of live entertainment rises. (x) government imposes stiff taxes upon video tapes. (y) technology carries on to advance. (z) prices of theater tickets fall.

  • Q : Find elastic demand when price and

    When the price of Kellogg's Corn Flakes goes up from $1.89 to $2.05 as well as quantity demanded changes from 250 to 210, in that case the demand for Kellogg's Corn Flakes: (w) unitary elastic. (x) relatively inelastic. (y) relatively

  • Q : Liabilities for damages and penalties

    Can someone please help me in finding out the accurate answer from the following question. The Caveat venditor is an ancient legal doctrine which encourages: (i) Consumer exploitation. (ii) a ‘buyers beware’ approach. (iii) Enforcement of the seller’

  • Q : Problem on buying a used car You desire

    You desire to purchase a used car. The dealer knows accurately how well the car works and how much it must cost, although you are not sure of its value. This is an illustration of: (i) Asymmetric information. (ii) Dealer rights. (iii) Predatory pricing. (iv) First mov

  • Q : Equality between marginal revenue and

    If all variable costs can be covered, in that case every firm maximizes profit by adjusting output till: (w) total revenue is maximized. (x) marginal revenue = average cost. (y) average cost = marginal cost. (z) marginal revenue = marginal cost.