A profit maximizing monopolist will hire labor up to the point where
A) marginal revenue product equals the price of the product.
B) marginal revenue product is greater than the wage rate.
C) marginal revenue product equals than the wage rate.
D) marginal revenue product is less than the wage rate.
Answer: C
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Refer to the table above. Laborland's net factor payments from abroad equal ________
A) -$18 billion B) -$20 billion C) $25 billion D) $20 billion
Many firms use technology to gather information on the preferences of consumers and their responses to changes in prices. This information is then used to adjust prices of the firms' goods and services. This practice is called
A) price discovery. B) yield management. C) empirical research. D) econometrics.
Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires labor in a competitive market where the wage is $10. Firm A will hire
A) 10 units of labor. B) 20 units of labor. C) 30 units of labor. D) 40 units of labor.
If the interest rate increases, there is a(n)
A) increase in the demand for money. B) decrease in the demand for money. C) increase in the quantity of money demanded. D) decrease in the quantity of money demanded.