An entrepreneur knits sweaters for sale. The entrepreneur has fixed costs of $100. When he makes 10 sweaters in one month, he must spend $15 on wool. To make eleven sweaters in one month, he must spend $17 on wool. If he has no other costs, what is the marginal cost of the eleventh sweater?
a) $1
b) $2
c) $17
d) $117
Ans: b) $2
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A firm that hires labor in a purely competitive resource market is a:
A. "Price maker" B. "Product taker" C. "Money maker" D. "Wage taker"
We can increase the United States' rate of economic growth by
A. devoting more output to capital goods.
B. devoting more output to improving our technology.
C. devoting more output to improving the quality of our labor force.
D. all of the choices are true.
To develop a competitive advantage and increase their firm's profitability, managers need to understand what affects their revenues, costs, and their ability to set prices
Indicate whether the statement is true or false
Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:
a. the first unit produced. b. each unit produced. c. the last unit produced. d. the profit-maximization unit.