Other things being equal, the marginal revenue product for labor hired by a firm that is a monopolist in the output market:
a. is represented by an upward sloping curve.
b. is equal to the marginal revenue product for labor hired by a perfectly competitive firm.
c. is less than the marginal revenue product for labor hired by a perfectly competitive firm.
d. is greater than the marginal revenue product for labor hired by a perfectly competitive firm.
e. is equal to the value of marginal product of labor.
c
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A normal good has a ________ income elasticity of demand and quantity demanded ________ as income rises
A) negative; increases B) negative; decreases C) positive; increases D) positive; decreases
An airline industry study recently reported, "Evidence is abundant that larger firms are not more efficient or less costly simply because they are larger. In fact, other things equal, the largest carriers tend to have a higher level of unit costs, possibly caused by the difficulties of managing an airline of large size." This means that
a. there are increasing returns to scale in the airline industry. b. the airline industry has constant returns to scale. c. the larger airlines are not profitable. d. airlines are experiencing decreasing returns to scale.
Diminishing marginal returns occurs when:
a. the marginal product of a variable input diminishes with each additional unit of the input. b. the marginal product of a variable input increases with each additional unit of the input. c. the marginal product of a fixed input diminishes with each additional unit of the input. d. the marginal product of a fixed input increases with each additional unit of the input.
Refer to the scenario above. Collectively, the firms will be better off if:
A) Firm 1 chooses to dump its waste into the river while Firm 2 chooses not to dump its waste. B) Firm 2 chooses to dump its waste into the river while Firm 1 chooses not to dump its waste. C) both firms choose to dump their waste into the river. D) neither of the firms dumps its waste into the river.