If the price of output increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________.
A. up; increase
B. up; decrease
C. down; increase
D. down; decrease
Answer: A
You might also like to view...
Which of the following best describes a good with perfectly elastic supply?
A) Any increase in the price of the good leads to an increase in the seller's revenue. B) Any increase in the price of the good decreases the quantity supplied of the good by more than the price change. C) Any increase in the price of the good will induce the firm to supply an infinite quantity of the good. D) Any increase in the price of the good increases the quantity supplied of the good exactly by the amount of the price change.
A payment of $10,000 is to be made in the future. The interest rate 3%. Is this payment worth more if it is paid in 5 years or 10 years? How much more is it worth?
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, according to the profit maximization rule, at the profit-maximizing level of output, marginal revenue is
A. $200. B. $300. C. $100. D. $250.
If the price of a good falls by 10% and the percentage decrease in the total amount consumers spend on the good is 15%, then the good is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic.