If the owner of an ice-cream stand told a student looking for summer work that he would not hire him even if he worked for nothing, we can infer that
A. the marginal product of the labor is zero or less.
B. the owner is producing at the lowest cost.
C. the marginal product of labor is rising.
D. the average product of labor is rising.
Answer: A
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Along a downward-sloping, linear demand curve, total revenue is the greatest
A) where demand is unit elastic. B) where demand is normal. C) where demand is the most elastic. D) where demand is the most inelastic.
An increase in the expected rate of inflation will ________ the expected return on bonds relative to the that on ________ assets, everything else held constant
A) reduce; financial B) reduce; real C) raise; financial D) raise; real
Backloaded compensation makes the wage profile increase at a decreasing rate
Indicate whether the statement is true or false
________ occurs when a large, powerful firm drives smaller firms out of the market by temporarily selling at an artificially low price.
A. A dominant strategy B. A prisoners' dilemma C. Predatory pricing D. A maximin strategy