Answer the next question(s) based on the information given in the following table.EmploymentTotal ProductProduct Price00$3112322233303436354036423If the firm is hiring workers under purely competitive conditions at a wage rate of $10, it will employ
A. 2 workers
B. 3 workers
C. 4 workers
D. 5 workers
Answer: D
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When the marginal revenue product of an input is less than its price, the
A. producer should expand the use of that input. B. price of the input will automatically rise in a free market. C. producer should reduce the use of that input. D. marginal physical product of that input must be below its average physical product.
Which of the following is an example of a natural monopoly?
a. Government b. The railway system c. An internet service provider d. An automobile manufacturer
Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00.Number ofworkersCoffee(cups/hour)00125245360470575 The dollar value to the coffee shop of hiring the fifth worker is ________ per hour.
A. $7.50 B. $5.00 C. $2.00 D. $1.50
One of the reasons for low cross-price elasticity in monopolistic competition and high cross-price elasticity in perfect competition is that
A. Firms in perfect competition differentiate their products. B. To save money, firms in monopolistic competition do not advertise. C. Consumers do not have perfect substitutes in perfect competition. D. In monopolistic competition consumers loyal to particular brands view other available products as poor substitutes.