Suppose at the current level of labor used, MRP = $20 and MFC = $25. To maximize profits, the firm should
A) hire more labor.
B) reduce the level of labor.
C) maintain the current level of labor.
D) expand production.
Answer: B
You might also like to view...
Suppose unregulated production of pesticides results in an equilibrium price and quantity of $400 and 1,000 tons per day, respectively, and a marginal external cost of $10 a ton
a) If the government were to eliminate the external cost by using taxes, what should the tax equal? b) Would the government action described above affect the quantity of pesticides produced? If yes, how? If no, why not?
Someone who is risk-averse has
A) diminishing marginal utility of wealth. B) constant marginal utility of wealth. C) increasing marginal utility of wealth. D) less marginal utility of wealth than someone who is risk-neutral.
If the demand for oranges falls, as a result, it is highly likely that the demand for:
A. orange juice will fall. B. orange grove workers will fall. C. apples will increase. D. apple orchard workers will decrease.
Figure 33-6
?
The short-run Phillips curve in Figure 33-6 would include which of the following points?
A. g, e, m B. g, e, r C. j, e, r D. j, e, m