If the wage in a perfectly competitive labor market is $20 and the marginal product of the last worker employed is 10 units, what must be the market price for the good being produced? Assume a perfectly competitive output market.

$2

$10

$22

$30

$200

Suppliers of factors of production in a perfectly competitive market respond to higher factor prices by ________ of their factors, ceteris paribus.

changing the quality

increasing the productivity

decreasing the productivity

increasing the quantity available

decreasing the quantity available

A firm in a perfectly competitive labor market is employing labor where the marginal revenue product of the last unit is $25 and the marginal factor cost is $30. Based on this, the firm should

employ more units of labor

employ fewer units of labor

employ the same amount of labor

lower its offered wage for labor

increase its offered wage for labor

If the demand for a good decreases significantly, then

only the quantity demanded of labor for the good decreases

the demand for the labor used to make the good increases

the demand for the labor used to make the good decreases

the quantity of labor supplied to produce the good will decrease

the supply of labor to produce the good will increase

The marginal benefit to suppliers will be less than the marginal cost to the single buyer. This describes

perfect competition

monopolistic competition

an oligopoly

a monopoly

a monopsony