A monopoly firm selling textbooks to students in a small town is currently maximizing profits by charging a price of $50 per book. It follows that the marginal cost of textbooks is:
A. less than $50.
B. equal to $50.
C. greater than $50.
D. greater than the average total cost.
Answer: A
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A minimum wage law is predicted to produce
a. higher unemployment among young and inexperienced workers. b. higher unemployment among all workers. c. lower unemployment among young and inexperienced workers. d. increased hiring of young and inexperienced workers.
Widespread behavioral evidence suggests that people:
A. are unable to assess the relative value of gains and losses. B. weigh gains more heavily than losses. C. place equal weight on gains and losses. D. weigh losses more heavily than gains.
Explain why technological progress will, at best, only temporarily allow a perfectly competitive firm to earn an economic profit.
What will be an ideal response?
The marginal revenue product curve for labor is the demand curve for labor.
Answer the following statement true (T) or false (F)