If the wage rate is ________ the value of marginal product, a firm can increase its profit by ________
A) greater than; selling an extra unit of output
B) less than; selling one less unit of output
C) less than; hiring an extra worker
D) less than; hiring one less worker
C
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If a country chooses to have a monetary policy oriented toward domestic goals and the freedom of international capital movements, then
A) it can have a fixed exchange rate. B) it cannot have a fixed exchange rate. C) it cannot balance its current account. D) it cannot have a fiscal policy oriented toward domestic goals. E) it cannot control money supply growth.
What best describes the changes in steel production from 1860-1910?
a. The open-hearth process quickly became the dominant production process after it was invented. b. Technological change in steel production changed relatively slowly. c. No technological changes occurred in the steel industry. d. The production of steel stayed constant through this period, but it became much more efficient.
Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2. At the Nash-Cournot equilibrium, the market price, P, is
A) 30. B) 45. C) 60. D) 90.
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:
A. $195 B. $30 C. $215 D. $185