________: level of input use where the marginal value product equals the marginal input cost
Fill in the blank(s) with correct word
Profit maximizing level of input use
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The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions
A) "when" B) "for whom" C) "how" D) "why"
Tomato Farms is selling tomatoes in a purely competitive market. Its output is 5000 bushels, which sell for $15 a bushel. At this level of output, the marginal cost is $15 a bushel and average total cost is $14.50 a bushel. Should the firm increase
output, decrease output, or not produce? Why? What will be an ideal response?
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. Earned Income Tax Credit improves child health because:
A. it increases employment and hence, health benefits. B. it increases income resulting in higher health expenditures. C. it forces children to work so they can get health insurance. D. it increases employment and hence, health benefits and it increases income resulting in higher health expenditures are both correct.
Explain why some small start-up companies choose not to pay dividends even though they make very large profits. Why might investors still be happy with this arrangement?
What will be an ideal response?