A firm will continue to purchase and use land until the:
A) value of marginal product of land equals the price of land.
B) value of average product of land equals the marginal product of land.
C) value of marginal product of land equals the marginal product of labor.
D) value of marginal product of land equals the marginal product of capital.
A
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In order for the price system to have satisfied the exacting requirements for efficiency,
A. MU must equal MC for each and every commodity. B. the average cost of producing each good must be equal to its MU. C. the maximum possible of total economic profit must be produced. D. every consumer’s MU will be equal to marginal physical product.
If a perfectly competitive firm incurs an economic loss, it should
A) shut down immediately. B) try to raise its price. C) shut down in the long run. D) shut down if this loss exceeds fixed cost.
Which of the following statements is true?
A) A change in sales should have more impact on current investment if it is expected to be permanent rather than temporary. B) On a percentage basis, investment is more volatile than consumption. C) In terms of dollars, investment and consumption are about equally volatile. D) all of the above E) none of the above
"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by
A) John Maynard Keynes. B) Karl Marx. C) Alfred Marshall. D) Adam Smith.