The marginal revenue product curve of a factor is negatively sloped because:
a. the additional revenue generated from an additional unit of a factor remains constant as more resources are hired.
b. the additional revenue generated from an additional unit of a factor declines as more resources are hired.
c. the additional revenue generated from an additional unit of a factor usually becomes zero as more resources are hired.
d. the additional revenue generated from an additional unit of a factor increases as more resources are hired.
e. the additional revenue generated from an additional unit of a factor doubles every time new resources are hired.
b
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Which of the following would be best classified as a private good?
A) a missile defense system B) police force C) radio frequency D) clothing
Producer surplus measures the value between the actual selling price and the:
a. price sellers are willing to sell the product. b. deadweight loss price. c. lowest price sellers are willing to sell the product. d. profit-maximization price.
In the long run, price elasticities of demand are usually
A. greater than they are in the short run because consumers have time to adjust. B. the same as they are in the short run because tastes don't change. C. less than they are in the short run because prices rise over time. D. less than they are in the short run because real prices fall over time.
Requiring that a firm engage in pollution abatement tends to reduce the firm's profits.
Answer the following statement true (T) or false (F)