If the MRP of the 13th worker hired is $40 and the MLC of that worker is $34, the firm
a. lost money by hiring that worker
b. cannot hire that worker unless more capital is added to production, in which case the firm will profit if the cost of the worker and capital is less than the revenue theworker generates
c. profited only if price of the good increased
d. must have lost money on the 12 workers it hired prior to hiring this 13th worker
e. profited by hiring that worker
E
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An example of tax smoothing is provided by evidence of
A) temporary changes in defense expenditures by the government. B) reductions in tax rates prior to presidential elections. C) Keynesian tax cuts designed to help the economy recover from a recession. D) reliance on debt financing rather than taxation during World War II.
In which oligopoly model(s) do firms earn zero profit?
A) Cournot B) Bertrand C) Stackelberg D) Oligopoly firms always earn positive economic profits.
Refer to the above table. What does the marginal revenue product equal when 27 workers are hired a week?
A) $1040 B) $216 C) $16.25 D) $8
Which of the following must be true if average variable costs are decreasing?
a. Average fixed cost exceeds average total cost. b. Marginal cost exceeds average variable cost. c. Marginal cost is less than average variable cost. d. Marginal cost is less than average total cost.