The question of how much labor a firm will hire comes down to:
A. whether added workers are going to generate more revenue or not.
B. if the added workers are going to add profits to the firm.
C. whether the value of the marginal product is greater than, less than, or equal to the average total cost.
D. the amount of capital that will be required in order to ensure the worker is productive.
B. if the added workers are going to add profits to the firm.
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In order to divide a given production quota between two production processes in such a way as to produce the quota at the lowest possible cost, one should produce the output where
A. marginal costs are at least equal to ATC in each process. B. average costs are equal for both processes. C. average cost is equal to marginal cost for both processes. D. marginal costs are equal in both processes.
Which of the following is not a lagging indicator?
A. duration of unemployment B. stock prices C. outstanding commercial and industrial loans D. prime rate
Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $24. How many hours should Joe stay open?
A. 3 hours B. 4 hours C. 5 hours D. 6 hours
The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the
A. fallacy of inductive reasoning. B. fallacy of logic. C. post hoc, ergo propter hoc fallacy. D. ceteris paribus fallacy.