Suppose the marginal physical product of labor at a shoe string factory is 1,500 shoestrings per hour at 80 hours, 1,200 per hour shoestrings at 90 hours, 800 shoestrings per at 100 hours, and 300 shoestrings per hour at 110 hours. If a shoestring maker’s wages are $60 per hour and each string sells for $0.05. What is the optimal use of labor for making shoestrings?
A. 80 hours
B. 90 hours
C. 100 hours
D. 110 hours
Answer: B
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Fill in the blank: According to your textbook authors, ________ is a key condition for competition to occur
A) government regulation of price B) government regulation of output C) preservation of profit D) freedom of entry
In the supply curve, the relationship between price and quantity supplied is
a. inverse. b direct. c. nonexistent. d. not determined.
Refer to Figure 20.2. Comparing the price elasticity of demand at points A and C, we can say that
A. Point C has a greater price elasticity of demand in absolute value. B. Demand elasticity is indeterminate because specific price data are not given. C. The elasticities are the same because the points are on the same demand curve. D. Point A has a greater price elasticity of demand in absolute value.
The slope of a non-linear curve
A. is constant. B. is always positive. C. is not constant. D. must first increase then decrease.