Figure 10.1 depicts a firm's marginal revenue product curve. Why does the marginal revenue product of labor decrease faster as the firm increases its use of labor by 10 hours?
A. Because the marginal product of labor decreases at an increasing rate.
B. Because the marginal product of labor decreases at a decreasing rate.
C. Because the marginal product of labor increases at an increasing rate.
D. Because the marginal product of labor increases at a decreasing rate.
Answer: A
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What is the current WTO policy regarding environmental standards and trade?
What will be an ideal response?
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A) $484 B) $450 C) $44 D) $34 E) -$1
What is meant by the term "comparative advantage"? How is it different from absolute advantage?
What will be an ideal response?
In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer. B) the value of the good to the buyer is greater than its value to the seller. C) the variable cost of producing the good is zero. D) the opportunity cost of consuming the good is zero.