Answer to Question #87162 in Microeconomics for Michael

Question

(A) the determinants of the price of a product in a perfectly competitive market is where the

(1) supply and demand curves intersect
(2) quantity supplied and quantity demanded intersect
(3) marginal cost equals the price of the product
(4) marginal revenue equals the marginal cost

(B) A minimum wage in a perfectly competitive labour market

(1) will normally be imposed below the equilibrium wage
(2) which is imposed above the equilibrium wage,will lead to an excess demand of labour
(3) which is set above the equilibrium wage, will lead to unemployment
(4) can be instituted in an attempt to exploit low-wage workers and to depress their living standard even further

(C) A utility maximising consumer will choose to purchase another unit of a good if

(1) the opportunity cost of consuming the good is constant
(2) the marginal utility of the good is falling
(3) the good has the lowest weighted marginal utility
(4) the good has the highest weighted marginal utility

Answer 1

(A) 

(3) marginal cost equals the price of the product

(B)

(3) which is set above the equilibrium wage, will lead to unemployment

(C)

(4) the good has the highest weighted marginal utility