A profit maximizing firm will hire additional workers until
A) the additional cost associated with hiring the last worker equals the average wage rate of the workers.
B) the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
C) the extra revenue generated by the last worker hired equals zero.
D) the extra cost associated with hiring the last worker equals the price of the good produced.
B
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Government regulations that increase the cost to the employer of hiring workers will:
A. increase the supply of labor. B. increase the demand for labor. C. decrease the supply of labor. D. decrease the demand for labor.
What is measured on the horizontal axis when we draw a graph of the long-run aggregate supply curve?
A) production of consumer goods B) real GDP C) production of capital goods D) the price level
The figure above portrays a total revenue curve for a perfectly competitive firm. The firm's marginal revenue from selling a unit of output
A) equals $0.50. B) equals $1.00. C) equals $2.00. D) cannot be determined.
A natural monopolist that sets prices equal to marginal cost will:
A. incur losses. B. have zero profit. C. still make a positive economic profit. D. be government owned.