The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:
a. product.
b. revenue product.
c. cost.
d. none of these.
b
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During the last four decades,
a. the total expenditures of Americans on health care have been relatively constant. b. the share of health-care expenditures covered by a third party (either the government or an insurance company) has increased substantially. c. the prices of health-care services have risen but not as rapidly as the general level of prices. d. health-care providers have lowered prices in response to the rapid increase in medical technology.
Answer the following statements true (T) or false (F)
1) All else equal, firms with a few large plants are more likely to have lower average costs than firms with many small plants. 2) A plant is located at the cost-minimizing location when the marginal benefit of moving closer to the inputs is exactly double the marginal cost of moving closer. 3) If a firm is not directly paying all of the transportation costs, managers still have an incentive to minimize the sum of the production and transportation costs. 4) If a firm has two plants, one in a desirable location and one in an undesirable location, workers located in the desirable location are likely to be paid more. 5) If a firm has two plants and workers at Plant 1 are paid $40,000 a year and workers at Plant 2 are paid $45,000, the $5,000 difference in salary is a compensating wage differential.
In the market for loanable funds, the law of supply:
A. reflects that more people will choose to save the lower is the interest rate. B. reflects that more people will choose to borrow the higher is the interest rate. C. reflects that more people will choose to borrow the lower is the interest rate. D. reflects that more people will choose to save the higher is the interest rate.
Undervaluing of opportunity cost sometimes occurs because:
A. opportunity cost is just theoretical. B. the benefit is difficult to visualize. C. the opportunity cost is easy to visualize. D. the opportunity cost is hard to visualize.