Regarding costs of production, can a firm ever be at a point that is not on the marginal cost curve? Explain
A profit-maximizing, price-taker firm always operates along its marginal cost curve. If output expands, we move rightward along the curve, and if it contracts, we move along the curve to the left. Since, by definition, a profit-maximizing price taker will produce the quantity where price (marginal revenue) equals marginal cost, the cost of producing the last unit will always be relevant, and you never move to a point that is not on the marginal cost curve.
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Holding everything else constant, a decrease in the price of GPS systems will result in
A) a decrease in the supply of GPS systems. B) an increase in the quantity of GPS systems demanded. C) an increase in the demand for GPS systems. D) an decrease in the quantity of GPS systems demanded.
What is an individual's marginal rate of substitution between nickels and dollar bills? Assume the individual only cares about the monetary value of each bundle
a. 5 b. 10 c. 20 d. 100
What are the optimal wage and employment level from the perspective of a union in Figure 31.1?
A. $8; 10 workers. B. $4; 13 workers. C. $5; 16 workers. D. $11; 32 workers.
A decrease in household income for a good that is considered normal would
A. cause a movement along the demand curve to a (higher price, lower quantity) point. B. move its demand curve to the left. C. cause a movement along the demand curve to a (lower price, higher quantity) point. D. move its demand curve to the right.