A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, the 14th worker hired adds ________ to the firm's total revenue each week.
A. $200 per week
B. $400 per week
C. $500 per week
D. $700 per week
E. $900 per week
Answer: A
You might also like to view...
Division of customers by territory or customer type is illegal
Indicate whether the statement is true or false
Which of the following is an argument against balancing the federal budget?
A. Doing so may prevent the government from pulling the economy out of recession. B. An increase in government spending and taxes by the same amount does not affect income. C. The economy will self-adjust so deficit spending is not necessary. D. None of the choices are correct.
In order to maintain stable prices, a central bank must
a. maintain low interest rates. b. keep unemployment low. c. tightly control the money supply. d. sell indexed bonds.
Official reserves are essential for countries that fix the value of their currencies beneath the market value.
Answer the following statement true (T) or false (F)