If the marginal physical product (MPP) is falling, then the
A. Marginal cost of each unit of output is rising.
B. Marginal cost of each unit of output is falling.
C. Total cost of each unit of output is falling.
D. Total cost of each unit of output is rising.
Answer: A
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Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average total cost (ATC). Which of the following equations is equal to a firm's average profit?
A) P - TC B) P - ATC C) (P - ATC) × Q D) (P × Q) - TC
Any point on the contract curve is Pareto efficient regardless of the initial endowment
Indicate whether the statement is true or false
When you see a commercial on TV asking you to "look for the union label," the union is trying to
A) increase worker productivity. B) increase the demand for nonunion goods. C) increase the demand for union goods. D) decrease the demand for nonunion goods.
A structurally unemployed person is
A. not counted as part of the labor force. B. an individual who cannot find a job because his or her job skills have become obsolete. C. an individual who is switching jobs within the same industry. D. an individual who cannot find a job because of a recession.