The level of output at which marginal revenue equals zero is also the level of output at which
a. total revenue is zero
b. profit is maximized.
c. total revenue is maximized.
d. total revenue is declining.
c
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What will be an ideal response?
Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?
A) immigration B) additions of a greater amount of capital of the same quality C) a decrease in the quality of labor D) continuing technological change
As long as there is some substitution effect in response to a change in the relative price of a good, there will be an excess burden from a tax
a. True b. False
A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is
a. $480. b. $960. c. $1,200. d. $2,400.