Refer to the above table. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $135, how many units of labor should be hired?
A) 11
B) 12
C) 13
D) 14
B
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For most practical matters, economists assume that
A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.
Inheritance taxes tend to increase income inequality in the long run
a. True b. False Indicate whether the statement is true or false
In a competitive market, when price is below the equilibrium price, there will be pressure for the price to:
A) fall. B) stay the same. C) rise. D) change only if demand and/or supply change.
In the short run, a firm should shut down its operation if:
A. its losses are less than TFC at the MR = MC point. B. its losses equal TFC at the MR = MC point. C. its losses are greater than TFC at the MR = MC point. D. TR is less than TC.