If the competitive firm maximizes profit by selecting labor rather than output, it will earn greater economic profit
Indicate whether the statement is true or false
False. Whether the firm maximizes profit by selecting output or labor, the resulting profit is the same. Since MC = w/MP, setting MC = p is the same as setting w = p ? MP.
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Your U.S.-based company is selling parts to a company in Bangladesh. If you require payment in US$
A) the Bangladeshi company bears the exchange rate risk. B) your company bears the exchange rate risk. C) the companies share in the exchange rate risk. D) there is no exchange rate risk.
If free international trade is compromised by the imposition of an import quota or tariff,
a. all of the following are true b. import-competing producers in the country that imposes the tariff or quota will be able to sell a larger quantity at higher prices c. consumers of import goods will obtain a larger quantity at lower prices d. workers in export industries will find more jobs e. consumers of export goods will obtain a larger quantity, although only at higher prices
When what people pay does not necessarily reflect the real value they put on a good, it is likely that the:
A. good is nonrivalrous. B. good is easily excludable. C. free rider problem exists. D. good will be oversupplied.
All of the following are advantages of a corporation EXCEPT
A) double taxation. B) limited liability. C) ability to raise large sums of financial capital. D) unlimited life.