A firm with market power will maximize profit by hiring the amount of an input at which the
A. last unit of the input hired adds the same amount to total output as to total cost.
B. additional output from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount.
C. additional revenue from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount.
D. last unit of the input hired adds the same amount to total revenue as to total cost.
Answer: D
You might also like to view...
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of
A) an increase in marginal cost to attend the review session. B) a decrease in marginal benefit to attend the review session. C) a rational choice. D) an incentive to attend the review session. E) None of the above answers is correct.
By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology
However, the costs of producing electric autos may increase because of higher costs for inputs (e.g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i.e., learning by doing). What is the expected impact of these changes on the equilibrium price and quantity for electric autos? A) Unambiguously higher equilibrium price and quantity B) Unambiguously higher price, and equilibrium quantity may be higher or lower C) Unambiguously higher quantity, and equilibrium price may be higher or lower D) We cannot form any unambiguous expectations for either price or quantity
The unemployment rate measures the: a. number of people in the labor force divided by the adult population
b. percentage of people in the labor force who are unemployed. c. percentage of people in an economy who have dropped out of the labor force. d. number of people in the adult population who are looking for work. e. number of people in the labor force who are not working.