The marginal revenue product is the extra revenue the firm receives by hiring one additional unit of input.
Answer the following statement true (T) or false (F)
True
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Suppose the extra cost to a pet store of advertising one additional day each week in the local newspaper is $450
Then, the pet store should advertize that one additional day each week if doing so brings in additional revenue of $450 or more each week. Indicate whether the statement is true or false
A normal good is a good for which the demanded decreases as income decreases, holding everything else constant
Indicate whether the statement is true or false
Which of the following does not impact aggregate demand in the Keynesian model?
a. Changes in the supply of labor b. Net exports c. Household consumption d. Desired business investment demand e. Government purchases of goods and services
According to the graph shown, if a firm is producing at Q2, and it is identical to others in the market:
A. profits are not being maximized. B. firms will enter this market. C. economic profits are zero. D. firms will leave this market.