If the price of the product produced by labor increases, the marginal revenue product of labor curve will
A. shift to the left.
B. be unaffected because productivity of labor has not changed.
C. shift to the right.
D. become more elastic.
Answer: C
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A professor in your microeconomics lectures derived a labor demand curve in the lecture
Given some reasonable assumptions, she showed that the demand for labor depends negatively on the real wage. You want to put this hypothesis to the test ("show me") and collect data on employment and real wages for a certain industry. You try to estimate the labor demand curve but find no relationship between the two variables. Is economic theory wrong? Explain. What will be an ideal response?
Backward induction involves:
A. a process of analyzing a problem in reverse. B. thinking forward and working backward. C. starting with the last choice and working backward to determine an optimal strategy. D. All of these statements are true.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. At what level of output will Bartech's average variable cost reach its minimum value?
A. 3,000 units B. 2,000 units C. 4,000 units D. 6,000 units E. 5,000 units
The supply curve in a market is vertical instead of upsloping whenever:
A. All buyers are willing to pay only one price for the item B. Sellers have no flexibility in setting the price of the item C. Buyers want to buy a fixed quantity regardless of price D. Sellers have a fixed quantity of the item for sale