Refer to the above table. Suppose the marginal revenue product of the 5th worker is $800. This implies that
A) the price of the good is $5.33.
B) the price of the good is $8.
C) the price of the good is $70.
D) we cannot tell what the price of the good is without more information.
B
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The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of
A. increasing average capital productivity. B. decreasing output per unit of capital. C. increasing returns to capital. D. diminishing returns to capital.
Which statement best describes the effect(s) that occur when a monopoly firm reduces the price of its product?
a. The "price effect" causes total revenue to fall. b. The "output effect" causes total revenue to rise. c. The "revenue effect" causes total revenue to remain constant. d. Both a and b are correct.
Explain why it is not necessary for paper money to be backed by some commodity (e.g. gold) before it can have value
The following table shows the different quantities sold by a monopolist at different prices
Quantity (units) Price ($) 1,000 14 1,350 12 1,700 10 2,100 8 2,650 6 3,000 4 3,300 2 a) Estimate the total revenue and marginal revenue of the monopolist at the different quantities. b) If the monopolist faces a constant marginal cost of $2.29, what is the optimal output it should produce?