If the wage rate is greater than the marginal revenue product of labor, the firm should ________ to maximize profits.
A. hire less labor and produce more output
B. hire less labor and produce less output
C. hire more labor and produce less output
D. hire more labor and produce more output
Answer: B
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In the case of a linear demand function, the marginal revenue function is twice as steep as the demand function
Indicate whether the statement is true or false
The deficit is
A) the amount by which government purchases, transfers, and net interest exceed tax revenues. B) the amount by which government purchases and transfers exceed tax revenues. C) the primary deficit minus net interest payments. D) total tax revenues minus net interest minus government expenditures.
Based on the graph above, if the economy is at point 2, then (assuming no price shocks and no changes in actual and potential output) the inflation rate next period will be ________ percent
A) 5 B) 3.5 C) 4.5 D) 4 E) none of the above
According to the monetarists and new classical economists,
a. only anticipated monetary policy actions will affect output and employment in the short run. b. only unforeseen monetary policy actions will affect output and employment in the short run. c. both anticipated and unanticipated monetary policy actions will affect output and employment in the short run. d. both anticipated and unanticipated monetary policy actions will affect output but not employment in the short run. e. none of the above.