An expanding manufacturer hired employees at the prevailing wage and saw profits rise. The firm continued adding employees, even though production barely increased with the latest round of hires. Which of the following explains how profits will be affected by further hiring?
a. Adding workers will improve marginal productivity.
b. Additional workers will not increase profits.
c. Total output will improve, so profits will increase.
d. Accounting profits will rise but not economic profits.
b. Additional workers will not increase profits.
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A $25,000 price tag on a new car is an example of money as
A) a medium of exchange. B) a unit of account. C) a store of value. D) a time deposit.
The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's total utility when she maximizes her utility?
A) 70 units B) 1516 units C) 2536 units D) 2586 units
In the above table, what is the marginal factor cost of the 4th worker?
A) $16 B) $30 C) $64 D) $22
If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases
a. True b. False Indicate whether the statement is true or false