A firm will hire a unit of input up to the point where
A. the marginal physical product of the input is equal to the price of output.
B. the marginal revenue product of the input is equal to the marginal factor cost of the input.
C. the marginal cost of the input equals the marginal cost of output.
D. the price of the input is equal to the price of output.
Answer: B
You might also like to view...
Refer to Scenario 12.2. In this game, if the players successfully coordinate and Jerome ends up playing his weak strategy, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting
a. universal access price discrimination b. declining block price discrimination. c. mixed bundling price discrimination. d. two-part price discrimination. e. uniform pricing
The consumer price index (CPI) is calculated
a. using a fixed basket of goods and, therefore, will tend to understate inflation. b. using a fixed basket of goods and, therefore, will tend to overstate inflation. c. using a constantly changing basket of goods and, therefore, will tend to understate inflation. d. using a constantly changing basket of goods and, therefore, will tend to overstate inflation.
As the definition of products narrows (i.e., becomes more specific), the concentration ratio
A) is not valid. B) tends to decrease. C) tends to increase. D) does not change in any predictable manner.