A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week. ss
Given the above, in profit-maximizing (or loss-minimizing) equilibrium, the firm's total variable costs are
A. $400.
B. $12,000.
C. $6,000.
D. $600.
E. none of the above
Answer: E
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The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy
Indicate whether the statement is true or false
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of $5. B) producing 8 units and charging a price of $15. C) producing 16 units and charging a price of $10. D) producing 20 units and charging a price of $25.
Refer to the above figures. Externalities exist in both panels. After correcting for the externalities the prices should be
A) P1 and P3. B) P1 and P4. C) P2 and P4. D) P2 and P3.
The government supports economic growth by investing in:
a. education, savings, and scientific research. b. education, exploration, and internationalization. c. savings, production, and technology. d. technology, savings, and production.