Refer to Table 7.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. Gladys' marginal revenue becomes negative starting with the production of which unit?
A. 2
B. 4
C. 6
D. None of these; marginal revenue is always positive or zero.
Answer: C
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Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 27 pillows and 14 blankets would appear
A) along Billie's production possibilities frontier. B) inside Billie's production possibilities frontier. C) outside Billie's production possibilities frontier. D) at the vertical intercept of Billie's production possibilities frontier.
Suppose at the current level of labor used, MRP = $10 and MFC = $10. To maximize profits, the firm should
A. maintain the current level of labor. B. shut down. C. reduce the level of labor. D. hire more labor.
Which of the following is the best definition of what economists define as total income?
A. inheritance B. payment for labor services, for use of other factors of production, and gifts and government transfers C. payment for labor services D. payment for labor services and for ownership of other factors of production
A change in the price of a service leads to a change in quantity demanded of the service.
Answer the following statement true (T) or false (F)