Which of the following represents the general rule of hiring for a firm?
A. Average revenue product equals the wage rate.
B. Total physical product equals marginal factor cost.
C. Marginal cost equals marginal revenue.
D. Marginal revenue product equals marginal factor cost.
Answer: D
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The ________ tax is similar to the sales tax
A) payroll B) value-added C) wealth D) excise
The Do-Good Company produces goods that provide benefits to society-at-large. If consumers of Do-Good's products fail to take external benefits into account
A) the demand curve will be too far to the left. B) the supply curve will be too far to the left. C) the demand curve will be too far to the right. D) the supply curve will be too far to the right.
Older Americans living on a pension and therefore on a fixed income, tend to be made
a. better off when prices rise. b. better off when inflation rates rise. c. worse off when prices rise. d. worse off when prices fall.
Andrew wishes to buy a watch and is willing to pay $300 . Spartan Watch Co sells the watch for $350 . Andrew will _____
a. purchase the watch from this shop as his opportunity cost is negative b. be indifferent between purchasing the watch and not purchasing the watch c. not purchase the watch as his consumer surplus is negative d. purchase the watch as the marginal social benefit from the watch is positive