When the marginal costs of adding workers to a firm are increasing, that firm is experiencing ______.
a. constant returns to scale
b. average variable cost
c. declining marginal utility
d. diminishing returns of labor
d. diminishing returns of labor
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If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $10, the firm:
A. can make positive profits by producing more than 43 units.
B. can make positive profits by producing where MC = MR.
C. cannot make positive profits and should shut down in the short run.
D. should continue to operate in the short run, but plan to exit in the long run.
Which of the following is NOT an example of investment in human capital?
A. a business student's internship B. A mechanic attends a training workshop on a new type of engine. C. Johnny learns how to read. D. a mobile device for work
Customers are most likely buying from a natural monopoly when they purchase
A) aspirin from a generic drug company. B) a laptop computer from Sony. C) a glass of water from the local water company. D) all of the above.
Economists Gary Becker and Kevin Murphy are associated with which of the following?
A) They discovered that price changes have both income and substitution effects. B) They have argued that social factors are not important in explaining the choices consumers make. C) Consumers appear to receive utility from consuming goods they believe are popular. D) They discovered the first example of a Giffen good.