For a firm to maximize profits, the marginal product of the last dollar spent on each resource must be equal.
Answer the following statement true (T) or false (F)
True
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Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. For residents of Long Beach Island, this barrier system would be a
A) private good. B) natural monopoly. C) common resource. D) public good.
Annual budgeting of production goals of a division within a firm
a. is an accounting mechanism to plan for the costs and revenues over a time period b. increase the burden on the division when goals rise c. can lead to accumulated inventory when the goals of an upstream division are arbitrarily set too high d. all of the above
Consider a regulated natural monopoly. If the regulatory commission wants to establish a fair-return price, then it should set a price ceiling where the demand curve crosses the monopoly's long-run:
a. marginal revenue curve. b. average revenue curve. c. marginal cost curve. d. average cost curve.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.