Firms should hire additional units of a resource as long as the:
A. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced.
B. marginal product of the resource is less than the price of the resource.
C. price of the output produced is positive.
D. marginal revenue product of the resource exceeds the cost of an additional unit of the resource.
Answer: D
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What is the marginal propensity to consume (MPC) and why is it important in predicting consumer behavior?
What will be an ideal response?
As chief financial officer you sell newly issued bonds on behalf of your firm. Your firm is
a. borrowing directly. b. borrowing indirectly. c. lending directly. d. lending indirectly.
Other things constant, which of these is likely to increase the supply of tomatoes in the market?
What will be an ideal response?
Scarcity:
A. exists because resources are unlimited while human wants are limited. B. means we are unable to have as many goods and services or as much time for activities as we would like to have. C. will likely be eliminated as technology continues to expand. D. is not an issue addressed in economics.