To calculate the marginal utility of consuming the Nth product:
A. divide total satisfaction from consuming all N products by N.
B. subtract total satisfaction from consuming N - 1 products from total satisfaction from consuming N products.
C. divide total satisfaction from consuming all N products by the price of the product.
D. subtract additional satisfaction from consuming the (N - 1)th production from the additional satisfaction from consuming the Nth product.
Answer: B
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Refer to Monopoly Problem. This monopoly will produce
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. 20 units. b. 30 units. c. 40 units. d. 60 units.
A household member's decision about how much labor to supply is most closely linked to
a. the supply of factors of production other than labor. b. technological change. c. the tradeoff between leisure and work. d. immigration trends.
Exhibit 6-1 Production of pizza data Workers Pizzas 0 0 1 4 2 10 3 15 4 18 5 19 Exhibit 6-1 shows the change in the short-run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is:
A. decreases in labor productivity. B. increases in plant size. C. decreases in fixed cost. D. increased division of labor as additional workers are hired.
In short-run equilibrium, a competitive firm cannot earn economic profits.
Answer the following statement true (T) or false (F)