--%>

Market power at 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: (p) VMP = MRP = MFC = w. (q) VMP > MRP = MFC = w. (r) VMP = MRP = MFC > w. (s) VMP > MRP = MFC > w.

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

   Related Questions in Microeconomics

  • Q : Define normal goods Normal goods:

    Normal goods: Normal goods are such goods whose demand increases with the increase in income of consumer.

  • Q : Problem on shortages or surpluses of

    The market is cleared when there are: (i) Buyers left waiting in line. (ii) Surplus supplies of unsold goods. (iii) No surpluses or shortages. (iv) Tendencies for the prices to increase. Can someone please help me in finding out th

  • Q : Perfect mobility and perfect information

    The model of perfect competition assumes perfect mobility and perfect information. Transaction costs are not present; therefore all buyers and sellers base decisions on the best information obtainable to anyone else, as well as transportation (mobilit

  • Q : Law of Demand and the Demand Curve

    Question: Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use e

  • Q : Commodities of inelastic demand Which

    Which of the given commodities contain inelastic demand? A) Salt B) A particular brand of lipstick C) Medicines D) Mobile phone E) School uniform

  • Q : Profit Maximization in the Labor Markets

    I have a problem in economics on Profit Maximization in the Labor Markets. Please help me in the following question. All the profit maximizing firms will hire labor up to a point where: (1) MRP = MFC. (2) MRP = w. (3) VMP = w. (4) VMP = MFC.

  • Q : Okun's Law Coefficient Is so Large Why

    Why the Okun's Law Coefficient Is so Large? Okun's Law posits not a 1-to-1 relation but a 2.5-to-1 relationship between real GDP growth and the unemployment rate. That is, a one percentage-point fall in the unemployment rate is associated not with a 1 but a 2.5 percent boost in the level of produ

  • Q : Wealth distribution by income When line

    When line 0C0' shows the 2005 U.S. income distribution, in that case the line that would shows the 2005 wealth distribution would be probably line: (1) line 0A0'. (2) line 0B0'. (3) line 0C0'. (4) line 0D0'. (5) line 0E0'.

  • Q : Problem on surplus inventories When the

    When the market price for soccer balls is above the intersection of supply and demand curves, then: (1) Shortages of soccer balls will be extensive. (2) Pressure will exist to raise the price of soccer balls. (3) Salaries paid people who make soccer balls are probable

  • Q : Stages of production One of my friends

    One of my friends can't succeed to get the answer of this question. Give solution of this question. Described the stages of production and in which stage will production occur and why?