The usefulness of the price-taker model requires that the firm's decision makers
a. act to maximize their total revenue and fully understand marginal costs and marginal revenues.
b. be able to draw accurate marginal cost and marginal revenue curves.
c. place the social interest of the economy above their individual self interests.
d. seek to maximize the profits of the firm.
D
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.
Which of the following theories fails to explain persistent unemployment?
A) classical theory B) Friedman and Phelps fooling theory C) new Keynesian theory D) Both A and B are correct.
Which of the following is the best example of physical capital used to produce a textbook?
a. the expertise and writing ability of the author b. the ink used in the printing press c. the printing press d. the property on which the publisher's office is located e. the time spent by editors reviewing the textbook
Regarding increasing productivity, factor mobility is
A. Important in that it helps to fix a stable labor-intensive production process. B. Important in that it helps to fix a stable capital-intensive production process. C. Not important in either a stable or dynamic economy. D. Important in that it helps to reallocate resources in a dynamic economy.