Assuming labor is the only variable factor of production, production of a good will occur
A. as long as the product's price is greater than the marginal revenue product of labor.
B. as long as the marginal revenue product of labor is positive.
C. if society values a good more than it costs firms to hire the workers to produce the good.
D. if the marginal cost of a unit of output equals the marginal revenue product of labor.
Answer: C
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The target zone model of exchange rates requires adjustment for
A) imperfect policy credibility and intra-marginal adjustments. B) imperfect policy credibility. C) speculative pressure and intra-marginal adjustments. D) speculative pressure.
Suppose a company expects prices in general to rise by 5%, but the price of its product rises by 2%. How will the company respond to the price change?
A) It will increase production since it's getting a higher price for the product. B) It will increase production more slowly since it's price is rising more slowly than average. C) It will reduce production since it perceives a relative decline in the demand for its product. D) It will stop production and shut down until prices rise more quickly.
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. The ________ imposed as a result of producing the efficient level of fertilizer is $250.
A. marginal private cost B. tax C. marginal social cost D. total damage
Suppose analysts are arguing about Head Start. The male analyst argues that the money spent on Head Start per person is worth it because current spending on it is less than current spending on the expected reduction in jail costs. The female analyst argues that the money was spent long ago and saved today, and it would necessarily be worth it.
A. The male analyst (alone) is properly advocating employing present value analysis. B. Both analysts are properly advocating employing present value analysis. C. Neither analyst is properly advocating employing present value analysis. D. The female analyst (alone) is properly advocating employing present value analysis.