A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should
A. hire more than five workers.
B. not hire a fourth worker.
C. hire four workers.
D. hire five workers.
Answer: C
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Which of the following is not a type of "lock-in" that acts as a barrier to entry into a particular market?
A) Pricing at or below the average cost of production. B) Purchases of durable goods. C) Loyalty programs. D) Specialized suppliers.
When entry of new firms decreases input prices in an industry, it is a(n)
a. increasing cost industry. b. decreasing cost industry. c. constant cost industry. d. input elastic industry.
By 2003, the average person in the West had about
a. 50% more income than the average person in the West in 1820. b. twice as much income as the average person in the West in 1820. c. ten times as much income as the average person in the West in 1820. d. twenty times as much income as the average person in the West in 1820.
In Figure 5.2, at quantities smaller than Q1,
A. total revenue is falling. B. price elasticity is greater than 1. C. price and total revenue are directly related. D. All of these