The marginal productivity principle says that a profit-maximizing firm should
a. hire capital until its marginal product is zero.
b. hire labor until another worker costs more to hire than she can earn for the firm.
c. hire the quantities of capital and of labor at which their marginal products are equal.
d. hire capital until its marginal product is negative.
b
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When the product demand is inelastic, labor demand is
a. low b. high c. elastic d. inelastic e. nonunion
Which of the following firms is most likely to shut down?
a. TicToc, Inc. has a total revenue of $500,000 and variable costs of $450,000 b. LWT, Inc. has a total revenue of $3 million and variable costs of $3.2 million. c. Sparkle, Inc. has a total revenue of $4 million and variable costs of $3.7 million. d. Motif, Inc has a total revenue of $6 million and variable costs of $6 million.
Ceteris paribus, _______ can change without shifting the demand curve for jackets.
a) The price of jackets b) Taste c) Income d) The price of sweaters
If consumption is greater than disposable income, the only APS that could possibly be right from among the following would be
A. -.1. B. 0. C. .1. D. 1.0.