The value of marginal product (VMP) of labor is the extra revenue generated by
A) selling one additional unit of output.
B) raising the price of the good by one dollar.
C) hiring one additional unit of labor.
D) price discrimination.
C
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Based on Table 3.1, if the world price of computers is four pairs of shoes, then the optimal strategy for each country would be
A) to specialize in shoes. B) to specialize in computers. C) for Mexico to specialize in shoes, and the United States in computers. D) for the United States to specialize in shoes, and Mexico in computers. E) None of the above.
According to the above table, what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?
A) 4.00 B) 2.82 C) 1.80 D) 1.21
A decrease in demand will result in a(n)
a. increase in equilibrium price and quantity b. decrease in equilibrium price and quantity c. decrease in equilibrium price and an increase in equilibrium quantity d. increase in equilibrium price and a decrease in equilibrium quantity e. change in equilibrium price and quantity only if supply changes too
Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment?
a. the supply of loanable funds shifted right. b. the supply of loanable funds shifted left. c. the demand for loanable funds shifted right. d. the demand for loanable funds shifted left.