If labor productivity increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________.
A. up; increase
B. up; decrease
C. down; increase
D. down; decrease
Answer: A
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An economy's marginal social benefit curve for a private good is obtained by summing the individual marginal
a) cost curves horizontally b) benefit curves vertically c) benefit curves diagonally d) benefit curves horizontally
The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time. B) wage rates rise as the economy reaches full employment. C) consumers tend to value a good more when they don't have much of it. D) resources are not equally productive in all output categories.
For a perfectly competitive firm, price always equals marginal cost.
Answer the following statement true (T) or false (F)
Innovation can lead to increased productivity.
Answer the following statement true (T) or false (F)