Figure 10.2 depicts a firm's marginal revenue product curve. Suppose that we observe the firm demanding five workers. If the firm is maximizing its profit, the wage rate must be between ________ and ________.
A. $5; $10
B. $10; $15
C. $15; $20
D. $25; $30
Answer: B
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The benefit from an additional unit of a good or service that the consumer of that good or service receives is the
A) marginal private benefit. B) marginal external benefit. C) marginal social benefit. D) opportunity cost.
Demand is inelastic if the price elasticity of demand is
a. less than 1. b. equal to 1. c. greater than 1. d. equal to 0.
OPEC periodically meets to agree to restrict the cartel's oil output, and yet almost every member of OPEC produces more than its own output quota. This suggests that OPEC has
A) a cooperative equilibrium. B) a noncooperative equilibrium. C) new potential entrants. D) a threat of substitute goods.
What is meant by the term "the natural rate of unemployment"?
What will be an ideal response?