Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is:
a. $10.00.
b. $500.
c. $5,000.
d. $1,010.
b
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Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly. As a result of this change
A) price will be higher, output will be lower, and the deadweight loss will be eliminated. B) consumer surplus will be smaller, producer surplus will be greater, and there will be a reduction in economic efficiency. C) consumer surplus will be smaller and producer surplus will be greater. There will be a net increase in economic surplus. D) price will be higher, consumer surplus will be greater, and output will be greater.
While price discrimination is possible between two markets it is not possible in more than two
Indicate whether the statement is true or false
(I) In the 1960s and 1970s, most economists believed that there was a permanent trade-off between inflation and unemployment. (II) Today, most economists believe there is no permanent trade-off between inflation and unemployment
a. Both I and II are true. b. Both I and II are false. c. I is true; II is false. d. I is false; II is true.
The government's role in a developing country is important during the country's development process because building social overhead capital
A. requires a joint venture between the public and private sectors. B. can only be financed by the private sector. C. cannot be taken on by the private sector. D. can only be achieved in a developing country.