A profit-maximizing firm always
A. sells its output at P = MC.
B. produces at the output at which MR is maximized.
C. hires labor until the MRP of labor < 0.
D. finds the output where marginal profit is zero.
Answer: D
You might also like to view...
The problem of production in multi-plant firms with asymmetric information can be solved by paying the manager
A) a piece rate, some constant amount per unit of output produced. B) a larger amount for each unit than was paid for the previous unit, to reflect increasing marginal cost. C) a smaller amount for each unit than was paid for the previous unit, to reflect decreasing marginal revenue. D) an annual bonus that increases with each unit of output up to capacity, and decreases with each unit of output past capacity. E) an annual bonus that is calculated decreases with each unit of output up to capacity, and increases with each unit of output past capacity.
When disposable income is 2000, C is
A. 2000.
B. 2200.
C. 2400.
D. 2600.
Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain
Fiscal policy _____
Fill in the blank(s) with the appropriate word(s).