The Pat Summerall School of Diction is employing teachers such that the marginal revenue product of teachers exceeds the wage rate. The school will
a. reduce its demand for teachers
b. lay off teachers
c. be losing money from those teachers employed
d. hire more teachers
e. increase the price of diction classes
D
You might also like to view...
In the short run, an expansion of output always causes in an increase in: a. TC
b. AFC. c. AVC. d. MC.
The market demand curve is calculated by:
A. Summing the price from individual demand curves. B. Averaging the price demanded from individual demand curves. C. Summing the quantities demanded from individual demand curves. D. Averaging the quantities demanded from individual demand curves.
Consumption expenditures do NOT include purchases of
A. durable goods. B. services. C. nondurable goods. D. intermediate goods.
A value of the absolute price elasticity of demand equal to 0.25 indicates that
A. a 1% decrease in price leads to a 2.5% increase in quantity demanded. B. a 10% decrease in price leads to a 25% increase in quantity demanded. C. a 10% decrease in price leads to a 2.5% increase in quantity demanded. D. a 0.25% decrease in price leads to a 1% increase in quantity.