If ten cases of pretzels are sold at a price of $8 each and the marginal product of the last unit of labor is 5, the firm's total revenue is
a. $80
b. $30
c. $50
d. $6
e. $150
A
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Products X, Y, and Z have price elasticities of 3.0, 0.80, and 1.0 respectively. Total revenue decreases if the price of
A) product X falls. B) product Y falls. C) product Z falls. D) product X or product Z falls. E) product Y or product Z falls.
All of the following costs will vary depending on the geographic location of a firm's plant except which one?
A) zoning issues B) Federal employee taxes C) traffic regulations involving large trucks D) real estate values
If the economy is currently experiencing a high unemployment rate, the greatest cost is
a. extra government spending b. rewarding those who do not work but collect government benefits c. lost output d. the cost of job searching e. the extra cost of funding job fairs
Which one of the following is an example of the circular flow of GDP and shows the interdependence of households and firms?
a. Households demand their resources from the firms in the resource market and, in turn, supply in the product market the goods and services produced by firms b. The firms go to the resource market to supply resources that households demand and, inin turn, provide households with the goods and services produced for the product market. c. Households supply resources to firms in the resource market and, in turn, demand in the product market the goods and services produced by the firms. d. The firms in the resource market pay to households in the form of wages, interest, rent, and profit—for resources demanded. e. The circuit is completed when the payments flow from households, through the product market, and to the firms for the goods and services they demand.