Marginal revenue product is
a. the additional cost of hiring one more unit of a resource
b. the additional units of output generated by hiring one more unit of a resource
c. calculated by multiplying marginal revenue by the price of a resource
d. the expected additional revenue generated by hiring one more unit of a resource
e. calculated by multiplying marginal revenue by the marginal resource cost of a resource
D
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Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year,
sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total contribution to GDP?
According to the Bureau of Labor Statistics, in the Federal Government, the starting salary for economists having a bachelor's degree was $35,752 in 2007. Assume that our economist will get this government job that offers a 3 percent raise annually. After 5 years of working, she quits and never works again. How much will this worker have earned over her brief working career? How much will she have paid in Social Security and Medicare taxes if the tax rate is 7.45 percent?
What will be an ideal response?
In the short run, a firm may have accounting losses and remain in operation.
Answer the following statement true (T) or false (F)
Svetlana is risk averse. Which of the following is correct about Svetlana?
a. Her marginal utility of wealth increases as her income increases. b. She will always accept a bet if the probability of winning a dollar is the same as the probability of losing a dollar. c. Her utility function is a straight line. d. None of the above are correct.