A profit-maximizing firm hires labor per week up to the point at which
A. the marginal revenue product of labor equals the wage.
B. the marginal revenue product of labor is equal to zero.
C. the marginal revenue product of labor is maximized.
D. the difference between the marginal revenue product and the wage is maximized.
A. the marginal revenue product of labor equals the wage.
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Even if some people are hurt by international trade, the HO model predicts that free international trade improves the standard of living for the country as a whole
Indicate whether the statement is true or false
Why are many economists skeptical of the Fed's ability to fine tune the economy?
A) Monetary policy only affects output in the long run. B) Lags in policy make it difficult to properly time policy. C) Fiscal policy can be implemented more quickly than monetary policy. D) Monetary policy does not have any effect on output.
Suppose the inverse supply curve in a market is Q = 6p2. What is the producer surplus when price is equal to 4?
A) 96 B) 128 C) 28 D) 48
The addition to total revenue resulting from one more unit of output is called marginal revenue
a. True b. False Indicate whether the statement is true or false