The Pet Emporium hires workers to bathe cats. The Emporium sells this service for $20. The marginal revenue product of this store?s fifth worker is $100. The marginal product of the fifth worker is
A. 0.2 bathed cats.
B. 1 bathed cat.
C. 5 bathed cats.
D. indeterminate from this information.
Answer: C
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Because the amount of labor a firm employs can be changed, the cost of labor is known as
A) minimum cost. B) variable cost. C) maximum cost. D) fixed cost. E) an unavoidable cost.
The marketing people for AT&T believe that if they lower the price of long-distance phone calls by 5 percent, their quantity demanded will increase by 15 percent. If they are correct in their belief, then
A) the demand for long-distance phone calls is price inelastic. B) the total revenue from long-distance phone calls will increase if they lower the price. C) the demand for long-distance phone calls is income elastic. D) the total revenue from long-distance phone calls will decrease if they lower the price.
Describe, in general terms, the strategy of monetary policy, explaining how monetary-policy tools are used to achieve the goals of monetary policy
What intermediate stages are important in going from tools to goals? What are the links between the different stages? How does the Federal Reserve use this strategy today?
Refer to Scenario 10.8. The deadweight loss from monopoly is ________
A) 0 B) 5 C) 10 D) 25 E) none of the above