A perfectly competitive firm is hiring variable resources m and n. It will minimize total costs when
A. MPm/Pm = MPn/Pn.
B. MRPm/MFCm = MRPn/MFCn.
C. Pm/MPm = Pn/MPn.
D. MRPm ? MFCn = MRPn ? MFCm.
Answer: A
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A flat tax: a. is designed so that everybody would pay the same number of dollars in taxes
b. is designed in such a way that as a person's income rises, the tax rate falls. c. is designed so that everybody would be charged the same percentage of their income. d. is designed to take a smaller percentage of higher incomes as compared to lower incomes.
Micah buys a used car for $10,000 and spends $200 on a new radio that is made in the U.S. The end result of these two transactions is
a. U.S. consumption purchases increase by $200 and U.S. GDP increases by $200. b. U.S. consumption purchases increase by $200 and U.S. GDP increases by $10,000. c. U.S. consumption purchases increase by $10,000 and U.S. GDP increases by $10,200. d. U.S. consumption purchases increase by $10,200 and U.S. GDP increases by $10,200.
If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will increase quantity demanded by:
A. 20 percent B. 0.5 percent C. 5 percent D. 0.05 percent
Which of the following will not shift the demand for the euro to the right?
A) an increase in interest rates in the European Union B) expectations among speculators that the price of the euro will rise in the future C) an increase in incomes in countries that buy goods from the European Union D) a decrease in the demand for European goods