For a perfectly competitive firm, the marginal revenue product is equal to the marginal product multiplied by the output price
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Given the consumption equation C = $500 billion + 0.80Y, an increase in national income from $6,000 billion to $7,000 billion will cause consumption to increase by
a. $800 billion b. $1,000 billion c. $1,300 billion d. $1,500 billion e. $1,800 billion
As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters
a. economies of scale. b. diseconomies of scale. c. increasing marginal product. d. diminishing marginal product.
A utility function is:
A. an equation for calculating the total utility that a group of people derive from consuming a particular good. B. an equation for calculating the total utility that a particular person derives from consuming a particular combination of goods and services. C. an equation for calculating the total utility that a particular person derives from consuming a particular good over a particular time period. D. an equation for calculating the most utility a particular person can derive.
If supply is highly elastic and demand shifts to the right:
A. price and quantity will hardly change at all. B. price will rise significantly; quantity hardly changes at all. C. price will hardly change at all; quantity will rise significantly. D. price will rise significantly as will quantity.