A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $30,000 and that of a market researcher is $20,000. The marginal contribution of engineers and market researchers are
Given the above information, if the manager currently has two engineers and one market researcher, what must be true?
A. Fewer new products will be developed if he hires fewer engineers and more market researchers.
B. He is not making the correct decision because MPE / PE > MPR/ PR.
C. More new products will be developed if he hires fewer engineers and more market researchers.
D. He is making the correct decision because MPE = MPR.
Answer: C
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What is a natural monopoly? Why is government justified in regulating a natural monopoly?
Protectionism is
a. the belief that a nation's industries should be protected from foreign competition b. the belief that a nation's consumers should be protected from foreign competition c. based on the idea that economies of scale are important d. consistent with absolute advantage, but not with comparative advantage e. the favored approach of pro-trade groups
Which of the following would shift aggregate demand to the right?
a. College graduates are having a difficult time finding jobs. b. There is a decline in consumer confidence. c. Stock market values increase by 20%. d. A fall in the price level increases the value of real wealth. e. The value of the dollar increases.
An insecure monopoly can deter another firm from entering the market by setting its quantity equal to:
A. the zero profit quantity. B. the zero profit quantity - the minimum entry quantity. C. the minimum entry quantity. D. the zero profit quantity + the minimum entry quantity.