If a profit-maximizing firm hires an additional unit of labor, what must be true about labor's wage and marginal revenue product?
a. Its wage always equals its marginal revenue product.
b. Its wage is always greater than its marginal revenue product.
c. Its wage is always total revenue minus marginal revenue product.
d. Its wage is always greater than or equal to its marginal revenue product.
e. Its wage is always less than or equal to its marginal revenue product.
E
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The above figure shows how an individual evaluates a bet in which he or she has a 0.5 probability of receiving $20 and a 0.5 probability of receiving $200. The individual would be indifferent between
A) $110 with certainty or the expected value of the bet. B) $80 with certainty or the expected value of the bet. C) $200 with certainty or the expected value of the bet. D) $20 with certainty or the expected value of the bet.
While the world was fairly integrated at the turn of the last century, most trade was in agricultural and raw materials, whereas today manufactured consumer and producer goods play a much greater role in determining exports and imports
Indicate whether the statement is true or false
If a firm triples all of its inputs and its output doubles, it is said to be experiencing
a. diminishing marginal returns b. increasing marginal returns c. diseconomies of scale d. economies of scale e. constant average costs
Firms exist because of the low cost associated with creating complete contracts
Indicate whether the statement is true or false