If product demand increases and product price increases
A. the marginal revenue product curve will shift to the right.
B. the firm will move up the marginal revenue product curve and hire fewer units of the input.
C. the marginal revenue product curve will shift to the left.
D. the firm will move down the marginal revenue product curve and hire more units of the input.
Answer: A
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If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing potatoes is ____ and the country with the absolute advantage in producing potatoes is ____
a. the United States; the United States b. the United States; Ireland c. Ireland; the United States d. Ireland; Ireland
Positive analysis:
A. aims at determining only the economic consequences of a particular policy. B. recommends whether a policy should be implemented. C. determines whether the consequences of a policy are desirable. D. depends on the analyst's values.
Each of the following statements describes how the political and legal environment encourages productivity except:
A. Price changes in markets give suppliers incentives to supply goods to markets. B. Pay rates determined by a governmental planning agency provide workers with incentives to work hard. C. Well-defined property rights encourage production and saving. D. Political stability promotes economic growth.
In the figure above, an increase in the price of a bag of potato chips would result in the budget line
A) making a parallel shift toward point a. B) making a parallel shift toward point c. C) becoming flatter. D) becoming steeper.