When MFC > MRP, a firm in a competitive market will
A) stop hiring additional workers.
B) hire more workers.
C) earn additional profits.
D) layoff workers.
Answer: D
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According to rational expectations theory,
A) increasing the money supply to reduce unemployment will always be successful. B) decreasing the money supply to reduce unemployment will usually be successful. C) increasing the money supply to reduce unemployment will not be successful because of an offsetting decrease in prices. D) increasing the money supply to reduce unemployment will not be successful because of an offsetting increase in prices.
Refer to Figure f. A benefit function is plotted in Figure f. The letter B represents the:
A. risk premium of the consumption bundle.
B. expected utility of the consumption bundle.
C. certainty equivalent of the consumption bundle.
D. expected consumption.
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $50,000 B. $12,500 C. $37,500 D. $40,000
The loan supply curve has a positive slope
a. for all savers. b. only for savers with fixed accumulation targets. c. for all savers except those with fixed accumulation goals. d. only for those contemplating retirement.