Other things being equal, as diminishing marginal returns begin to occur, the marginal revenue product of labor:
A. decreases as more workers are used.
B. increases as more workers are used.
C. remains unchanged as more workers are used.
D. None of these
Answer: A
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Holding other factors constant, the increase in African Americans and Hispanics in the labor force in the United States has
A) decreased structural and frictional unemployment. B) increased cyclical unemployment declined. C) decreased cyclical unemployment increased. D) increased the natural rate of unemployment.
Because a monopolist must lower its price in order to sell another unit of output,
a. marginal revenue is less than price. b. long-term economic profits will be zero. c. total revenue increases as price increases. d. average revenue is less than price.
At an output of 64, MC = $31, ATC = $31, and MR = $32. At that output the firm is
A. maximizing its profits, but not operating at peak efficiency. B. maximizing its profits and operating at peak efficiency. C. operating at peak efficiency, but not maximizing its profits. D. neither operating at peak efficiency nor maximizing its profits.
An efficiency wage
What will be an ideal response?