If the marginal product of labor is always positive, and total revenue grows with each additional worker. Firms do not continuously hire new workers because:
A. there isn't enough room in the factory.
B. there isn't an infinite number of workers.
C. wages would have to increase.
D. they stop when MRP = wage
Answer: D
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Assume that a consumer can spend $20 on two goods–pens and pencils. If the price of one pen is $5 and the price of one pencil is $2, which of the following combinations of the two goods represents a point on the consumers budget constraint?
A) 3 pens and 2 pencils B) 1 pen and 10 pencils C) 2 pens and 5 pencils D) 2 pens and 3 pencils
Game Emporium offers lower prices to children than to adults. This is an example of: a. the inefficiency of monopoly. b. perfect competition
c. utility maximization. d. price discrimination.
If the government budget deficit increases, which curve in the market for loanable funds shifts, which direction does it shift, and what happens to the interest rate?
If the demand for money and the supply of money both decrease, the equilibrium:
A. interest rate will decline, but we cannot predict the change in the equilibrium quantity of money. B. quantity of money and the equilibrium interest rate will both increase. C. quantity of money will increase, but we cannot predict the change in the equilibrium interest rate. D. quantity of money will decline, but we cannot predict the change in the equilibrium interest rate.