Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table.WorkersPages/hour0014027531054125514061507155 If the price of each page increases, then the demand for workers will
A. remain the same because changes in the output market will not affect the demand for labor.
B. decrease because at a higher sales price the firm will not have to produce as much output.
C. increase because the value of the marginal product of labor will increase.
D. increase because the workers will be motivated to produce more.
Answer: C
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A. determines whether the consequences of a policy are desirable. B. recommends whether a policy should be implemented. C. aims at determining only the economic consequences of a particular policy. D. depends on the analyst's values.
Microeconomics explores the allocation of scarce resources from the perspective of small economic units such as consumers and firms
a. True b. False Indicate whether the statement is true or false
The marginal utility of the first smoothie that Jimmy drinks in the morning is worth $3.00. The marginal utility of the 4th smoothie he drinks is positive while the marginal utility of the 5th smoothie he drinks in the morning is worth $0. This implies that at a price of $0, Jimmy would drink
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