Which of the following statements regarding marginal analysis are? true? (Check all that apply.?)
A. It excludes information that is relevant to the? individual's decision.
B. It is often faster to implement than optimization using total value.
C. It focuses on the difference between one feasible alternative and the next feasible alternative.
D.It always picks out a different optimum than the minimization of the total cost.
B. It is often faster to implement than optimization using total value.
C. It focuses on the difference between one feasible alternative and the next feasible alternative.
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How do product development and marketing affect a firm in monopolistic competition?
What will be an ideal response?
If MC > MR,
A. output should be reduced. B. marginal profit is positive. C. there are losses. D. output should be increased.
The Phillips curve is a statistical relationship that was misrepresented as showing
a. disequilibrium outcomes of uncoordinated policy. b. alternative equilibrium points that the economy could achieve. c. the unemployment rates necessary to close a recessionary gap. d. the increases in interest rates from different inflation rates.
A wheat farmer sells wheat in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of wheat is $2 a bushel, the wage rate is $10, the farmer employs five workers and the marginal product of the fifth worker is 3 bushels. What would you advise this farmer to do?
A. Reduce employment because the wage paid is more than the marginal revenue product. B. Increase employment because the wage paid is less than the marginal revenue product. C. Do nothing because the wage rate and the marginal product of the last worker hired are equal. D. Reduce the product price so that the wage and marginal revenue product will be equal.