A firm is producing a joint product, Product A and Product B, with variable proportions. At its current production levels, the marginal benefit of producing Product A is $4 and the marginal cost is $2 and the marginal benefit of producing Product B is $4 and the marginal cost is $6. To maximize profits, the managers of the firm should produce ________ of Product A and ________ of Product B.
A) more; less
B) less; more
C) less; less
D) more; more
A) more; less
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If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today
a. True b. False Indicate whether the statement is true or false
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The marginal product of the fourth worker is
A. 2. B. 3. C. 12. D. 14.
Related to the Economics in Practice on page 306: Almost 90 percent of advertisements seen in movie theaters are produced and sold by two firms. This movie theater advertisement industry would be characterized as
A. an oligopoly. B. monopolistically competitive. C. perfectly competitive. D. a monopoly.
Assume that the resource market is purely competitive. If the price of the resource falls, other factors constant, then a firm that sells its product in a purely competitive market will:
A. Increase production by a larger amount than a firm with some monopoly power in its product market B. Increase production by a smaller amount than a firm with some monopoly power in its product market C. Decrease production by a larger amount than a firm with some monopoly power in its product market D. Decrease production by a smaller amount than a firm with some monopoly power in its product market