If product demand decreases and product price decreases,
A. the firm will move up the marginal revenue product curve and hire fewer units of the input.
B. the firm will move down the marginal revenue product curve and hire more units of the input.
C. the marginal revenue product curve will shift to the right.
D. the marginal revenue product curve will shift to the left.
Answer: D
You might also like to view...
A free-rider problem exists if
A) those consuming the good pay more than the cost of providing the good so that the producer's profits increase ("free ride") as a result of the overpayment. B) those consuming the good pay nothing for it. C) two consumers can jointly consume a good, which lowers the price per person. D) a firm can obtain technology at a fair price.
The formula for the price elasticity of demand
A. relies on statistical data. B. is based fully on knowledge of the slope of the demand curve. C. in practice drops the sign and focuses on the magnitude. D. is valid only when the price of product increases.
Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the price of good B increases, the new equilibrium is most likely to be
A) point f. B) point d. C) point e. D) point h. E) point b.
Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car
If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.