What is the relevance of the marginal productivity principle in explaining the use of inputs in production?
What will be an ideal response?
According to the marginal productivity principle, when factor markets are competitive, it always pays a profit-maximizing firm to hire the amount of any input that makes the marginal revenue product equal to the price of the input.
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If the production possibilities curve is a straight line,
A. opportunity costs rise as output of either commodity is expanded. B. resources are not equally productive in the production of both goods. C. opportunity costs are negative. D. resources can be moved from the production of one good to production of others with no loss of productivity.
With the debris of more than 50 years of climbing on the beautiful high slopes – oxygen canisters, tents, backpacks and even some bodies – Mount Everest has been called the world's highest garbage dump
It has been suggested that there should be a limited number of climbers allowed on the mountain each year to limit the environmental degradation that occurs. This method of achieving efficient use of a common resource is most like A) a property right. B) an individual transferable quota. C) a production quota. D) a marginal social benefit right.
What three factors regarding differences in interest rates on similar bonds can prevent the interest parity condition from holding?
What will be an ideal response?
The health maintenance organization that contracts with individual physicians or group practices to provide care for a specified group of enrollees is called
a. a group-model HMO. b. a staff-model HMO. c. a network-model HMO. d. an IPA. e. a direct-contract HMO.