The perfectly competitive firm shown in Figure 9-6 is currently producing 180 units of output. To maximize profit, it should
a.
increase output until ATC is maximized
b.
reduce output to 140 units
c.
reduce output to 100 units
d.
raise its price and lower its output
e.
raise its price and raise its output
b
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If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is
a. 15 units of output b. 5 units of output c. 3 units of output d. 45 units of output e. 75 units of output
Firms that emit toxins into the air:
a. underproduce because the private cost of production exceeds the social cost. b. overproduce because the social cost of production exceeds the private cost. c. produce the same as nonpolluting firms. d. produce at the socially optimal amount.
The amount of additional earnings that must be paid explicitly in taxes or implicitly in the form of a reduction in income supplements is known as the
a. marginal income tax rate. b. implicit marginal tax rate. c. explicit benefit-reduction rate. d. supplemental income tax rate.
The trading partner where the deficit has increased the most in the last 20 years is
A. China. B. Saudi Arabia. C. Canada. D. Mexico.