If the marginal revenue product (MRP) of labor is less than the wage rate
A. less labor should be employed.
B. the firm is making profits.
C. the firm is incurring losses.
D. more labor should be employed.
Answer: A
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Is there any difference between borrowing from the federal funds market and borrowing from the discount window? Explain
What will be an ideal response?
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The opportunity cost of producing 1 ton of soybeans in the United States is
A. 1/3 of a computer. B. 1/5 of a computer. C. 3 computers. D. 5 computers.
Sydney sells snow globes from a cart. When the cart is located on the sidewalk near a discount store, Sydney's customers have reservation prices of $5. When Sydney's cart is located on a sidewalk in an upscale mall, wealthier customers with reservation prices of $10 buy snow globes. Assume that Sydney can sell the same volume at either location and that marginal and average costs are $3 per globe at both locations. Information about the reservation prices of Sydney's customers increases total surplus by:
A. helping to ensure that snow globes go to consumers who like them most. B. encouraging sellers to locate in underserved areas. C. allowing consumers with different incomes to acquire things they value. D. helping to ensure that snow globes go to consumers with the greatest willingness to pay.
A monopolist maximizes its profit by producing the amount of output that sets
A) total revenue equals total cost. B) marginal revenue equals marginal cost. C) marginal revenue equals zero. D) price equals marginal cost.