A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the price of the final good
a. True
b. False
Indicate whether the statement is true or false
False
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XYZ Corporation operates in perfectly competitive input markets and employs labor, capital,land in its production process. What three conditions must be met for the firm to be maximizing profit?
What will be an ideal response?
If a the price index was 60 in 2000 and the price index was 90 in 2009, the best estimate of the annual inflation rate between 1998 and 1999 is:
a. 15%. b. 40%. c. 50%. d. 90%. e. 7/5.
For a cruise liner deciding how to price its rooms, if the cost of overpricing is lower than the cost of underpricing, then the management of the cruise liner should
a. Price lower than what they expect would fill capacity b. Price higher than what they expect would fill capacity c. Price such that they would expect to just fill capacity d. None of the above
Within the AD/AS model, if consumers and investors become more optimistic about the future direction of the economy,
a. aggregate demand will decrease. b. aggregate demand will increase. c. long-run aggregate supply will increase. d. long-run aggregate supply will decrease.