A business that discovers a decline in profit can best solve the problem by
a. firing any workers who were hired since the business had maximum profits
b. hiring more workers until the former level of profit is reached
c. creating a production costs schedule to find the point when increasing returns change to diminishing returns
d. creating a production costs and revenues schedule to find the profit-maximizing output
Ans: d. creating a production costs and revenues schedule to find the profit-maximizing output
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Suppose a firm hires labor in a competitive labor market. When will hiring more labor increase the firm's profit?
a. When the marginal revenue product of labor exceeds the wage rate. b. When the marginal product of labor is positive. c. When the marginal labor cost is falling. d. When the wage rate is less than the firm's marginal cost of production.
What does a perfectly competitive firm do to maximize profits?
What will be an ideal response?
Which of the following is not a source of technological advancement for a producer?
A) better trained workers B) more efficient physical capital C) higher skill level of managers D) outsourcing some aspect of production
Economic profit is
A. P(q-ATC). B. Pq/ATC. C. (P?ATC)q. D. (P+ATC)q.