Comparing marginal revenue to marginal cost (i) reveals the contribution of the last unit of production to total profit. (ii) is helpful in making profit-maximizing production decisions. (iii) tells a firm whether its fixed costs are too high
a. (i) only
b. (i) and (ii) only
c. (ii) and (iii) only
d. (i) and (iii) only
b
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Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run
a. True b. False Indicate whether the statement is true or false
Sam owns a candy factory and hires workers in a competitive labor market to pack cases of candy. The company's weekly output of cases of candy varies with the number of workers hired, as shown in the following table:Number ofworkersCases/week00116023103450458057006810 If each case sells for $3 more than the cost of the materials used in producing it, then the most Sam would pay the 5th worker is ________ per week.
A. $120 B. $390 C. $360 D. $330
When an employee at a grocery store scans the price of your items, bags the groceries, and collects your paper, the individual has provided
A. physical capital. B. land. C. entrepreneurship. D. a service.
“The welfare state is not a mechanism which provides something for nothing; every piece of social insurance must be paid for.” Evaluate and explain. Can you think of any circumstances in which unemployment compensation might provide “something
for nothing?” What will be an ideal response?