The marginal revenue product
a. tells how many dollars the marginal physical product is worth.
b. is the marginal physical product times price of the product under perfect competition.
c. is the marginal physical product times marginal revenue.
d. All of the above are correct.
d
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Refer to Figure 8A.2. An increase in the saving rate is represented by
A) a movement from e2 to e1. B) shifting from s1Y to s2Y. C) a movement from K1 to e1. D) shifting from s2Y to dK.
Although some economists believe network externalities are important barriers to entry, other economists disagree because
A) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of economies of scale. B) they believe that most examples of network externalities are really barriers to entry caused by the control of a key resource. C) network externalities are really negative externalities. D) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of the efficiency of firms in offering products that satisfy consumer preferences.
A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the implicit demand elasticity is
A) -0.2. B) -0.8. C) -1.25. D) -5.0.
When economic profits are zero, accounting profits are most likely:
A. zero. B. negative. C. positive. D. All of these are likely.