The marginal revenue product is the extra revenue the firm receives by selling one more unit of output
a. True
b. False
Indicate whether the statement is true or false
False
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The "policy ineffectiveness proposition" of the new classical attack on policy activism is based on the idea that
A) people will anticipate policy changes particularly those based on a feedback rule. B) people will anticipate the effects of policy changes and act to offset these effects. C) Both A and B are correct. D) None of the above is correct.
To earn an economic profit in the short-run, a monopolist sets marginal revenue equal to zero
a. True b. False Indicate whether the statement is true or false
Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.
a. true b. false
Which of the following best illustrates the fallacy of composition?
a. If Jamal had more money, he could afford to buy more goods.
b. If Aisha stood up at a basketball game, she could get a better view of the game; if everyone stood up at a basketball game, everyone could have a better view of the game.
c. If the price of bread rose, consumers would buy less; if consumers bought less bread, the price of bread would rise.
d. High housing prices cause people to buy less housing, but an increase in income might cause them to buy more housing.