If the price of a resource is greater than its marginal revenue product, the firm should:
A. Charge a higher price for its product
B. Make no change in the units of the resource used
C. Increase the units of the resource used in order to increase profits
D. Decrease the units of the resource used in order to increase profits
D. Decrease the units of the resource used in order to increase profits
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Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes charges different price in the morning and in the afternoon, then what will be its daily economic profit?
A. $32 B. $27 C. $33 D. $39
Regional Federal Reserve Banks
A) are located in each of the 50 states. B) are run by the governors of the states in which they are located. C) provide general banking services to the public. D) None of the above answers is correct.
Which of the following is NOT an example of off-balance-sheet lending?
A) a swap B) a standby letter of credit C) a loan commitment D) a loan sale
Would companies and individuals invest as much in significant research and development if a system of patents were not available? a. Yes they would, because they could still hope to monopolize the market
b. Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. c. No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. d. No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.