Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by
A. multiplying total product by product price.
B. dividing total revenue by marginal product.
C. comparing marginal product with various possible input prices.
D. multiplying marginal product by product price.
Answer: D
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A key characteristic of the production function in the endogenous growth model presented in the text is that
A) there are increasing returns to scale in human capital. B) there are decreasing returns to scale in human capital. C) there are constant returns to scale in human capital. D) at low levels of human capital, there are increasing returns to scale in human capital, while at high levels of human capital, there are decreasing returns to scale in human capital.
Answer the following statements true (T) or false (F)
1. The highest unemployment rate in the United States in recent years has been among adult females. 2. Part-time workers who want full-time employment but cannot find it are considered underemployed. 3. Increases in the federal minimum wage directly affects only a small percentage of U.S. workers. 4. Because of increases in the minimum wage, new entrants into the labor force find it easier to find employment. 5. Many economists believe that increases in the minimum wage tend to create a labor surplus.
What is the incentive for a firm to join a cartel?
A) to be able to earn profits in the long run but not in the short run B) to be able to earn larger profits than if it was not part of the cartel C) to completely insulate itself from competition D) to produce a larger amount of output than if it was not part of the cartel
In Figure 5.8, if the supply curve moves from S2 to S3,
A. the firm will go from making normal profits to a loss. B. the firm will go from making an economic profit to a normal profit. C. the firm will go from making an economic profit to a loss. D. the firm will make a smaller economic profit than they used to.