A firm faces competitive markets for its inputs and its output. Its marginal revenue product of labor
A) is increasing in the output price.
B) is decreasing in the output price.
C) is independent of the output price.
D) has an inverted U-shape.
A
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A competitive firm's supply curve is determined by
a. its marginal costs. b. the market price. c. the zero-profit condition. d. its fixed inputs.
When negative externalities are involved, the market is said to
A. fail, because it underproduces the good connected with the negative externality. B. fail, because it overproduces the good connected with the negative externality. C. succeed, because it produces the socially optimal quantity of the good connected with the negative externality. D. be "in optimum," because the equilibrium fully adjusts for the negative externality.
The poverty rate in the United States has __________ over the last 30 years.
A. remained the same B. increased C. decreased D. not been accurately measured
If businesses expect the economic activity to expand
A) the planned investment function relating investment to the interest rate will shift to the left. B) the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve. C) the planned investment function relating investment to the interest rate will steepen. D) the planned investment function relating investment to the interest rate will shift to the right.