For any resource it hires, a firm's marginal revenue product
a. is the change in the firm's total cost divided by the change in employment of that resource
b. equals the resource's marginal factor cost
c. equals marginal cost
d. is the change in the firm's total revenue divided by the change in employment of that resource
e. equals the change in the firm's marginal revenue
D
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The price-output combination that maximizes profits for a monopolist occurs at the point where
A) total revenues and total costs are equal. B) the difference between total revenues and total costs is the greatest. C) total revenues are the greatest. D) the elasticity of demand equals one.
High transaction costs:
A. make spot exchange an efficient way to obtain inputs. B. may be the result of downward-sloping demand. C. may be a result of buyer opportunism. D. occur when specialized investment is not important.
Refer to the figure below. Assume the market is originally at point W. Movement to point Z is a combination of: 
A. an increase in demand and an increase in quantity supplied. B. an increase in supply and an increase in demand. C. a decrease in supply and an increase in quantity demanded. D. an increase in supply and an increase in quantity demanded.
Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?
What will be an ideal response?