If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $8 per unit, and the wage rate is $26 per hour, then
A. Product price must be reduced if profits are to be made.
B. The employer should lower wages and accept less employment of labor.
C. The additional unit of labor should be employed.
D. The additional unit of labor should not be employed because it costs more than it is worth.
Answer: D
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Sustained growth refers to a growth process:
A) where growth in GDP per capita is attributed primarily to public sector firms and enterprises. B) where GDP per capita grows at a positive and steady rate for long periods of time. C) where growth in GDP per capita is translated into equal increase in welfare for all citizens in the country. D) where GDP per capita grows at a rate of more than 20% per year for long periods of time.
The marginal cost (MC) curve intersects the
A) ATC, AVC, and AFC curves at their minimum points. B) ATC and AFC curves at their minimum points. C) AVC and AFC curves at their minimum points. D) ATC and AVC curves at their minimum points.
If the demand for softballs increases, one could expect the demand for leather to increase. This is attributable to the
a. opportunity cost of producing softballs. b. marginal productivity principle. c. reduction in the cost of production of softballs. d. derived demand for an input.
An agency that regulates product markets is the
A. Occupational Safety and Health Administration. B. Environmental Protection Agency. C. Federal Trade Commission. D. Equal Employment Opportunity Commission.