Aperfectly competitive firm is currently producing at the profit-maximizing output level. if the marginal physical product of labor is 10 units per hour and the firm pays a wage rate of $8 per hour, which of the following is truea) the marginal revenue product of labor is $80. (b) the marginal cost is $1.25. c) the average total cost is $0.80 per unit. (d)the output price is $0.80 per unit. e) the output price is $1.25 per unit.

D) The output price is $0.80 per unit.

Explanation:

In order for a profit maximizing firm to operate in a competitive market, the marginal revenue product (MRP) must be equal to the marginal cost (MC).

MRP = MC

MC = $8 per hour (wage rate per hour)

MRP = 10 units per hour x output price per unit = $8

output price per unit = $8 / 10 units = $0.80 per unit

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to