An increase in the productivity of a factor of production will
A. cause a firm to move down the marginal revenue product curve.
B. shift its marginal revenue product curve to the right.
C. cause a firm to move up the marginal revenue product curve.
D. shift its marginal revenue product curve to the left.
Answer: B
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Which of the following will improve your salary bargaining position
a. Wait until the large project you were integral to is completed b. Wait until your employer has hired many others with similar skills as yours' c. Wait until your employer has invested greatly into a long-term project you lead d. Wait until your employer buys new machinery that you are incapable of operating
Trade enhances the economic well-being of a nation in the sense that
a. both domestic producers and domestic consumers of a good become better off with trade, regardless of whether the nation imports or exports the good in question. b. the gains of domestic producers of a good exceed the losses of domestic consumers of a good, regardless of whether the nation imports or exports the good in question. c. trade results in an increase in total surplus. d. trade puts downward pressure on the prices of all goods.
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.
Suppose a monopoly faces an inverse demand curve of P = 6 ? Q and has constant marginal cost of 2. If the government is considering legislation that would regulate price to the competitive level, what is the maximum amount the monopoly would spend on (legal) lobbying activities designed to thwart the regulation?
A. $4 B. $6 C. $2 D. None of the answers are correct.