At what price should a firm produce to maximise profit in a perfectly competitive market
(1) where price equals marginal cost
(2) where price equals marginal revenue
(3) where price equals total revenue
(4) where price equals average revenue
Which of the following correctly characterises a perfectly competitive labour market?
(1) a large number of firms and a large number of workers
(2) imperfect information
(3) employees and employers having individual control over the market wage rate
(4) very few skilled workers
Which of the following is true of the profit maximizing level of employment in a perfectly competitive labour market?
(1) the marginal revenue product equals the value of marginal product
(2) the marginal revenue product equals the marginal cost of labour
(3) the marginal product equals the marginal revenue product
(4) the marginal product equals the marginal cost of labour