If the marginal product of labor equals the average product of labor, then the
A. marginal product is maximized.
B. average product is still increasing.
C. marginal product is still increasing.
D. average product is maximized.
Answer: D
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Why do some utilities have an incentive to exaggerate their costs of production?
What will be an ideal response?
There is statistical evidence that managers' salaries are tied most closely to
a. profits at the profit-maximizing output. b. sales volume. c. cost per unit at minimum-cost output. d. the closeness of output to the point where MR = MC.
Are jobs the key to economic progress and the achievement of high income levels?
a. Yes, as long as people are working, real income levels will be high. b. Yes, when full employment is present, income levels will be at their maximum. c. No, it is not just employment, but employment that expands production of goods and services that others value highly relative to cost. d. Uncertain, additional employment will increase real income only when the general level of prices is unchanged.
In a competitive market, a firm's supply curve dictates the amount it will supply. In a monopoly market the
a. same is true. b. supply curve conceptually makes sense, but in practice is never used. c. supply curve will have limited predictive capacity. d. decision about how much to supply is impossible to separate from the demand curve it faces.