A profit-maximizing firm should hire an input as long as the:
A. Firm can increase its total revenue
B. Price of the input doesn't exceed the price of the other inputs used in the firm's production
C. Marginal revenue product of the input is at least as much as the cost of hiring the input
D. Marginal revenue product of the input is greater than the marginal revenue product of other inputs the firm is using
C. Marginal revenue product of the input is at least as much as the cost of hiring the input
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How much do you believe that current tax policy is influenced by politics, as opposed to sound and efficient tax policy?
What will be an ideal response?
In an industry with network effects and differentiated products, it is possible for the industry to become an oligopoly if
A) they engage in a zero-sum game. B) they use a price-leadership model. C) they use a kinked demand curve model. D) a few firms reap most of the sales gains resulting from positive market feedback.
An increase in the interest rate shifts the money demand curve to the right
a. True b. False
Who is credited for the original development of the model of aggregate demand and aggregate supply?