Assume a pencil manufacturer is employing resources C and D in such quantities that the MRPs of the last units hired are $80 and $50 respectively. The price of resource C is $90 and the price of D is $35. This firm:
A. should hire less of C and more of D.
B. should hire more of both C and D.
C. should hire less of both C and D.
D. is using the least-cost combination of C and D.
Answer: A
You might also like to view...
An improvement in the technology used to produce goods would:
If Tattling Tina does not tattle, what would Bratty Brenda's best response be
a. Hit b. Not hit c. Run d. Hide
At the equilibrium price
a. only sellers who value the product more than the equilibrium price would be willing to sell b. only buyers who value the product less than the equilibrium price would be willing to buy c. only buyers who value the product more than the equilibrium price would be willing to buy d. None of the parties would be willing to trade
Suppose sellers of liquor are required to send $5.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $3.00 per bottle. Which of the following statements is correct?
a. This tax causes the supply curve for liquor to shift upward by $5.00 at each quantity of liquor. b. The effective price received by sellers is $5.00 per bottle less than it was before the tax. c. Forty percent of the burden of the tax falls on buyers. d. All of the above are correct.