If MRP < MLC, the firm
a. is employing the optimal quantity of workers
b. should decrease the quantity of labor it employs
c. should lower the wage rate
d. should increase the quantity of labor it employs
e. should raise the wage rate
B
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When Homer has 5 doughnuts, his marginal value is 15¢ per doughnut. We can conclude that Homer
a. places a value of 3¢ on each doughnut he owns. b. needs to purchase more than 5 doughnuts to reach his optimum. c. receives 75¢ worth of total satisfaction from his 5 doughnuts. d. would refuse to pay more than 15¢ for a sixth doughnut.
Refer to Figure 8.7. Which of the following statements is true?
A. The technology represented in graph A will cause the firm to experience diseconomies of scale.
B. The technology represented in graph B will cause the firm to experience diseconomies of scale.
C. The technology represented in graph B will cause the firm to experience economies of scale.
D. The technology represented in graph C will cause the firm to experience diseconomies of scale.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
When quantity demanded is greater than quantity supplied,
A. there is a surplus. B. price will fall until it gets back to equilibrium. C. quantity supplied will rise and quantity demanded will fall. D. quantity supplied will fall and quantity demanded will rise.