Why does economic theory predict that a perfectly competitive firm will produce at the point where price equals marginal cost?
a. This point provides an efficient allocation of society's resources.
b. This point results in zero economic profit.
c. This point maximizes profit for the firm.
d. This point will minimize ATC for the firm.
Ans: c. This point maximizes profit for the firm.
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If the contribution from capital growth equals 3 percent and the contribution from productivity growth equals 1.6 percent, GDP will grow by ________
A) 1.6 percent B) 4.6 percent C) 4.8 percent D) an unknown value
Which of the following is false? a. An increase in labor productivity will shift the demand curve for labor to the right
b. An increase in wage will lead to an increase in the supply of labor. c. A decrease in the nonwage income of workers would shift the labor supply curve to the right. d. If job amenities deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve.
Economic problems are made manageable by stripping away some of the unnecessary details
a. True b. False Indicate whether the statement is true or false
Specialization occurs when workers are assigned particular work based on their gender
a. True b. False Indicate whether the statement is true or false