If a manager is unsure what the entire profit function looks like, then she can
A) decrease output slightly to see if profits increase.
B) increase output slightly to see if profits increase.
C) Both A and B.
D) None of the above.
C
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Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is $5 per bushel. He also knows that a consumer is willing to pay a maximum of $9 for the bushel. The price of the bushel is $6 and Farmer Jones sells his bushel for $6
On this bushel, Farmer Jones earns a producer surplus equal to A) $1. B) $3. C) $5. D) $6.
The marginal factor cost is the
A) additional revenue obtained from a one-unit change in labor input. B) additional revenue obtained from a one-unit change in output. C) change in output resulting from the addition of one more worker. D) cost of using an additional unit of an input.
A firm has $350 million in revenues and explicit costs of $150 million. If its owners have invested $150 million in the company at an opportunity cost of 10 percent a year, the firm's economic profit is: a. $50 million
b. $150 million. c. $185 million. d. $200 million.
A self-managed team is still headed by a boss
Indicate whether the statement is true or false