If the marginal product of the second worker hired by a firm is 14 units and the price of a unit of output is $7 regardless of the quantity of output sold, then the marginal revenue product of the second worker is
a. $98
b. $14
c. $7
d. $2
e. $21
A
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A binding price floor is designed to:
a. increase efficiency. b. raise the price above the equilibrium price. c. keep the price below the equilibrium price. d. generate a shortage
An effect of the inflation tax is that it redistributes income from the:
A. government to the borrowers of fixed-interest-rate debt. B. borrowers of fixed-interest-rate debt to the government. C. lenders of fixed-interest-rate debt to the borrowers of this debt. D. borrowers of fixed-interest-rate debt to the lenders of this debt.
The "direct effect" of an increase in the money supply is to
A. increase aggregate supply as producers anticipate higher future profits. B. decrease the rate of inflation. C. increase aggregate demand as people spend their excess money balances. D. increase aggregate demand as interest rates fall and investment spending increases.
Refer to the data. If price was initially $4 and free to fluctuate, we would expect the:
Answer the question on the basis of the given supply and demand data for wheat:
A. quantity supplied to continue to exceed the quantity demanded.
B. quantity of wheat supplied to decline as a result of the subsequent price change.
C. quantity of wheat demanded to fall as a result of the subsequent price change.
D. price of wheat to rise.