Total revenue for producing eight units of output is $48. Total revenue for producing nine units of output is $63. Given this information, the:
A. average revenue for producing nine units is $1.
B. average revenue for producing nine units is $15.
C. marginal revenue for producing the ninth unit is $15.
D. marginal revenue for producing the ninth unit is $1.
Answer: C
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Assume the LRAC curve for a particular industry hits its minimum point at a relatively low level of output and then increases, and the demand for industry output is quite large
In this case, consideration of the minimum efficient scale of operation suggest that the market should be served by: A) a large number of small firms to minimize production costs. B) a small number of large firms to minimize production costs C) a large number of large firms to minimize production costs. D) an indeterminate number of firms of indeterminate size to minimize production costs.
As Product Co adds the first four workers to its production process in the short run, its output rises from 0 to 12 to 25 to 35 to 43 . Addition of the fifth worker will most likely lead to an output rate
a. greater than 51 b. equal to 51 c. less than 51 d. greater than 51 if the firm experiences diseconomies of scale e. none of the above
Assume that GDP growth in a particular country is 4 percent per year. How many years it will take for GDP to double?
a. 80.0 years. b. 17.5 years. c. 10.0 years. d. 20.0 years. e. 20.5 years.
Marginal revenue product of labor is defined as the additional
a. output a firm would receive after hiring one more unit of resource b. cost of hiring one more unit of resource c. revenue earned by selling one more unit of product d. revenue earned by hiring one more unit of labor e. output received by spending one more dollar on resources