Suppose at the current level of labor used, MRP = $100 and MFC = $50. To maximize profits, the firm should
A) hire more labor.
B) reduce the level of labor.
C) maintain the current level of labor.
D) shut down.
A
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The firm learns that the probability of launch estimated for the voice activated software was too optimistic and instead is actually 65%. Is it still worth for the company to develop the simplified software?
a. No, because the expected return is lower b. No, because the expected return is higher c. Yes, because the expected return is higher d. Yes, because the expected return is lower
Refer to the graph below. A minimum wage in this labor market would
a. cause some layoffs as the quantity demanded for workers falls.
b. create some unemployment as a result of an increase in the quantity supplied of labor looking for a job.
c. create a surplus of labor in this market.
d. All of the above.
Natural monopolies result from the peculiar relationship between
a. government regulation and the ownership of scarce resources b. threats to potential entrants and the price of the product c. the size of market demand and the firm's cost structure d. product differentiation and the ownership of patents e. the firm's advertising campaigns and its labor policies
U.S. exports are included in aggregate demand because the exports contribute to the total ______.
a. spending on goods and services by U.S. consumers b. U.S. demand for foreign goods and services c. U.S. sales of goods and services by foreign producers d. demand for U.S. goods and services