If the firm’s marginal physical product is 8, and its handicrafts sell for $70, when a unit of labor costs $150, the firm is operating
A. short of an optimal input point.
B. at the optimum input point.
C. beyond the optimum input point.
D. There isn’t enough information to determine if the input point is optimal.
Answer: A
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"Duopoly" is
A) another name for monopoly. B) a special type of monopolistic competition. C) a two-firm oligopoly. D) a game with three players. E) the situation when a firm sets a duo (two) of different prices for its customers.
If the market price is at equilibrium, the deadweight loss is zero
Indicate whether the statement is true or false
The riskier the bond, the ________ the discount rate and the ________ the price of the bond.
A) lower; lower B) lower; higher C) higher; lower D) higher; higher
The deadweight loss due to a ________ is always smaller than the deadweight loss due to a ________
A) tax on each unit sold; per unit tax on each unit bought B) per unit tax on each unit sold; per unit tax on each unit bought C) tax on each unit sold; lump-sum tax D) lump-sum tax; tax on each unit bought