The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is at its maximum and equals 30. The marginal revenue product of labor is $300. The price of its output
A) is $0.10.
B) is $10.
C) is $9,000.
D) cannot be determined without more information.
B
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Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, then it must be true that:
A. Moe gets less benefit from spending time with Curly than from studying. B. the opportunity cost of studying is greater than the value Moe gets from spending time with Curly. C. Moe gets more benefit from spending time with Curly than from studying. D. the opportunity cost of studying is less than the value Moe gets from spending time with Curly.
The demand and supply schedules for pizza are in the table above. A price ceiling of $4 per slice results in
A) a surplus of 20 slices of pizza. B) a shortage of 20 slices of pizza. C) a shortage of 40 slices of pizza. D) a shortage of 60 slices of pizza. E) neither a shortage nor a surplus.
Which of the following has been offered as a possible explanation to the evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies?
A) That foreign exporters have been increasingly adopting "pricing-to-market" policies. B) That transaction costs have decreased in recent years. C) That global leaders have encouraged this phenomenon. D) That the share of imports with prices more sensitive to exchange rates has been increasing.
An example of term limits in the United States would be that U.S. presidents cannot hold more than:
A. four 2-year terms. B. four 4-year terms. C. two 4-year terms. D. two 2-year terms.