A price taking firm employs each of its inputs into production until its marginal product is equal to 1.
Answer the following statement true (T) or false (F)
False
Rationale: ... until its marginal revenue product is equal to its price.
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Suppose the public increases the level of savings in anticipation of higher future taxes to service the national debt. This is an example of
A) Reaganomics. B) Ricardian equivalence. C) Smithsonian equivalence. D) Monetary equivalence.
How might financial deepening contribute to poverty reduction?
What will be an ideal response?
XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than 1. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?
In a competitive market, the actions of any single buyer or seller will
a. discourage entry by competitors. b. influence the profits of other firms in the market. c. have a negligible impact on the market price. d. None of the above is correct.