Answer the following statement true (T) or false (F)
1) The marginal revenue product curve of a purely competitive seller declines solely because of
the law of diminishing returns.
2) Producers should hire resources until the total output of each is equal.
3) It will be profitable for a firm to hire additional units of any resource up to the point at which its
MRP is equal to its MRC.
4) The more elastic the demand for a product, the less elastic will be the demand for the
resources employed in producing it.
1) T
2) F
3) T
4) F
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Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient
A) cost B) technologically C) economically D) capital and labor
Suppose thatthere are 10 million sport fishermenalong the East coast for each type of fish identified in the study, and that each fisherman makes 3 sportfishing trips per year.If an efficient number of fishing trips is achieved in each category, what would be the total costs for each fish category, assuming the 20 percent increase in the catch rate?
HOW MUCH IS CLEANER WATER WORTH TO MARINE SPORTFISHING? Most water quality research focuses on a particular water body or region for the context of its analysis. Such is the case for a University of Maryland study supported by the EPA that analyzed the coastal region from New York to south Florida (excluding the Florida Keys). The location was motivated by the economic activity being studied: marine sportfishing. Eighty percent of all East Coast marine sportfishing takes place in the area targeted by the study. Furthermore, the region is one where there are active pollution control initiatives and where management plans for recreational fisheries are in place. The objective of this university research was to develop a database and a procedure that can be used to estimate the economic value of two related factors: access to marine sportfishing and changes in the catch rate of various species, where the catch rate is the average number of fish caught per fishing trip at a given site. The link between these two factors and economic benefits is a logical one. Water quality policy reform can improve the catch rate, which in turn will affect fishermen's decisions about where to fish, what species they fish for, whether they fish from the shore or from a boat (called the fishing mode), and even how often they go fishing. By measuring these changes in fishermen's behavior, researchers can make the link to a monetized benefit measure of improved fishing conditions that can be achieved through tougher pollution controls. To determine catch rates, the analysis used survey data collected by the National Marine Fisheries Service. Three categories of catch rates are defined by type of fish: big game fish (e.g., marlin and tuna), small game fish (e.g., bluefish and mackerel), and bottom fish (e.g., snapper and grouper). Three different preliminary benefit estimates were reported by the EPA: • A 20 percent increase in the catch rate of small game fish for both fishing modes at all sites would increase the average benefit of each fishing trip by $0.33. • A 20 percent increase in the catch rate of bottom fish by boat would increase the average benefit per trip by $1.27. • A 20 percent increase in the catch rate of large game fish would yield an increase in benefits of $1.56 per trip.
A fixed exchange rate policy:
A. imports monetary policy. B. strengthens domestic interest rate policy. C. will likely make domestic inflation more volatile. D. decreases central bank policy accountability and transparency.
The job finding rate is defined as
A. the probability that someone who is unemployed will find a job in the next month. B. the probability that someone who is employed will change jobs in the next month. C. the probability that someone who is not in the labor force will enter the labor force in the next month. D. the probability that someone who has been unemployed for over a year will find a job in the next month.