Consider a perfectly competitive firm that can raise its output by 2 units by hiring an additional unit of capital. If the cost of hiring this additional unit of capital is $4 and the market price of the good is $1, the firm will certainly hire this unit of capital. [Hint: MRP = MP X MR]
a. True
b. False
Indicate whether the statement is true or false
False
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Linus has just watched two hours of TV. We can say:
A. his second hour of watching TV likely reduced his total utility. B. his second hour of watching TV likely added less to his total utility than did the first. C. if he watches a third hour it will likely decrease his total utility. D. if he watches a third hour it will likely increase his total utility by at least as much as the second.
An increase in the demand for a product will shift the demand curve for labor producing the product to the right
a. True b. False Indicate whether the statement is true or false
The first step in forming a corporation is to
a. find a large number of partners b. take out a business loan c. obtain a charter from the state government d. hire more staff e. pay dividends to stockholders
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is AD. If the price of CDs decreases, her new budget constraint becomes
A. AE. B. BD. C. AO. D. EF.