In a perfectly competitive labor market, the least-cost combination rule for resource use
A) requires that resources be used in combinations such that marginal products are equal.
B) requires that the marginal physical product per dollar spent for each resource is equalized.
C) assures the firm an economic profit.
D) assures the firm a normal profit.
B
You might also like to view...
An economy's production function is Y = A , and the economy's total output in equilibrium is $800 billion. Total capital income in this economy is ________
A) $200 billion B) $25 billion C) $750 billion D) $267 billion E) none of the above
Which of the following statements is TRUE about the optimal quantity of pollution?
A) It equals zero. B) Pollution abatement should continue up to the point where marginal cost equals the average total cost. C) Trade-offs exist between producing a cleaner environment and producing other goods and services. D) Firms should be allowed to determine the profit-maximizing amount of pollution abatement.
An increase in the confidence that equipment-buying firms have in their future profitability will
A. increase the demand for borrowable money. B. increase the supply of borrowable money. C. decrease the demand for borrowable money. D. decrease the supply of borrowable money.
One of the major reasons why nations trade is that
A. nations choose to trade for largely unknown reasons. B. resources are not equally distributed across the planet. C. nations wish to exert cultural influence abroad. D. nations wish to copy others and need imports to study.