Marginal revenue product can be calculated using the formula marginal product × output price
A) only if the both marginal product of labor and the output price are constant.
B) only if the firm has market power in the labor market
C) only if output price is constant.
D) only if the marginal product of labor is constant.
C
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Due to the ________ effect, the final shift in aggregate demand is larger than the initial shift in aggregate demand
A) multiplier B) substitution C) income D) crowding-out
A speculator who believes strongly that interest rates will fall would be likely to
A) buy futures contracts on Treasury bills. B) sell futures contracts on Treasury bills. C) sell Treasury bonds in the spot market. D) decrease now the amount of money which he lends.
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
If a monopolist increases sales from 10 to 11 by lowering its price from $40 to $38, its marginal revenue is:
A. $400. B. $2. C. $418. D. $18.