Which of the following examples is motivated by nonmonetary self-interest?
a. updating factory equipment to improve efficiency
b. giving to the boss’s favorite charity with the hope of getting a raise
c. increasing employee pay to improve motivation to make sales
d. giving donations to help victims of an earthquake
d. giving donations to help victims of an earthquake
You might also like to view...
Marginal utility theory predicts that an increase in income means that the consumption of
A) all goods will increase. B) normal goods will increase and consumption of inferior goods will decrease. C) inferior goods will increase and consumption of normal goods will decrease. D) None of the above answers is correct.
A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 1,000 units is $2.50. The minimum possible average variable cost is $2. The market price of the product is $2.50. To maximize profits, the firm should
A. increase production to more than 1,000 units. B. decrease production to less than 1,000 units. C. continue producing 1,000 units. D. shut down.
Which of the following is a likely result of the dramatic decrease in the price of microprocessor chips to computer manufacturers in the last two decades?
A. an increase in the supply of computers B. an increase in the quantity supplied of computers C. a decrease in the supply of diskettes D. an increase in the demand for computers
The most important determinant of the elasticity of supply is
A. the price of the good. B. the time period firms have to adjust to the new price. C. the proportion of the good in the budget of consumers. D. whether the good is a durable good or a nondurable good.