A firm may pay efficiency wages in an attempt to
a. entice workers to work the night shift rather than the day shift.
b. improve productivity by reducing turnover.
c. reduce costs by attracting the least-skilled workers to apply for job vacancies.
d. All of the above are correct.
b
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Refer to Table 10-7. What is Antonio's marginal utility from consuming the fifth beer?
A) 4 utils B) 13.6 utils C) 69 utils D) 134 utils
Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $11, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $9. Based on this information, the firm is:
A) earning an economic profit of $300. B) earning an economic profit of $600. C) incurring a loss of $300 and should shut down. D) incurring a loss of $300, but should continue to operate in the short run.
The deadweight loss a tax causes depends on all of the following except:
A. how responsive buyers and sellers are to a price change. B. the price elasticity of supply. C. the price elasticity of demand. D. who the tax is imposed upon.
The psychological rewards of inventing a new product generally result in ____ profits for entrepreneurs
a. below average b. only average c. above average d. indeterminate