A firm will hire additional units of any input up to the point where
a. the marginal productivity of the input is maximized.
b. the marginal cost of employing the input is minimized.
c. the expense of employing the last unit is equal to the revenue brought in by the last unit.
d. the revenue brought in by the input is maximized.
c
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Who would be least inclined to engage in "feel good" foreign projects, which contribute minimal benefits to the poor but look impressive to outside observers?
A) Private investors B) Foreign governments C) International aid agencies D) The World Bank
The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm increases its output from 2 pounds of cookies to 3 pounds, the marginal revenue is ________ per pound of cookies
A) $11 B) $15 C) $30 D) $45
The government safety net creates both an adverse selection problem and a moral hazard problem. Explain
What will be an ideal response?
The marginal product of labor (measured in units of output) of a firm is given by MPN = A(2000 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $6 per unit and A = 0.002. (a) What will be the demand for labor if the nominal wage is $18? (b) What will be the demand for labor if the nominal wage rises to $21?