The marginal revenue product can be written as:
a. TR / P.
b. w / Q.
c. MP × P.
d. MRP × P.
e. w × L.
c
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Consider a market in which high-quality and low-quality television sets are sold. Before consumers make a purchase, they do not know the quality of the sets, but the sellers do know
As compared to a situation where both consumers and sellers know the quality of the sets, this situation would A) cause no change in the ratio of low to high-quality sets sold. B) increase the fraction of high-quality sets sold. C) increase the fraction of low-quality sets sold. D) cause the average price of goods sold to rise.
Shaina and Mariah have a business that provides personal fitness training services. They know that after raising their prices from $100 to $150 per hour, the quantity of hours they spent delivering training services fell from 45 to 40 hours per week. The demand for their services is:
a. elastic, with a price elasticity coefficient greater than one. b. elastic, with a price elasticity coefficient less than one. c. inelastic, with a price elasticity coefficient greater than one. d. inelastic, with a price elasticity coefficient less than one.
The distribution of profits among partners is determined by the
a. government's regulations b. partnership agreement c. financial contribution each makes to the business d. limits of their liability e. quantity of stock each owns
When the production of a good involves several inputs and inputs are used in fixed proportions, an increase in the cost of one input will usually cause total costs to
A) rise more than in proportion. B) rise less than in proportion. C) remain unchanged. D) rise by the exact amount of the input price increase.