Marginal revenue product of labor measures the extra revenue generated to the firm from the employment of an additional worker
a. True
b. False
Indicate whether the statement is true or false
True
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An indifference curve is a line showing
A. combinations of goods that can be produced if all resources are fully employed. B. all combinations of two commodities that are equally desirable to the consumer. C. all combinations of goods over which the consumer has no choice. D. how decisions are made in a nonmarket economy.
In the late 1980s, the health benefits of oat bran were widely advertised. If the price of oats increased 50%, causing the quantity of oats supplied to increase by 40%, then the price elasticity of supply was
A) 1.25. B) -1.25. C) -0.80. D) 0.80.
Either an increase in demand with the supply curve held constant or a decrease in supply with the demand curve held constant will raise a market's equilibrium price
a. True b. False Indicate whether the statement is true or false
In the short-run under perfect competition, which of the following is always true?
a. Economic profit earned by firms can be negative, zero, or positive. b. Economic profit earned by firms is always zero. c. Economic profit earned by firms can be zero or positive, but not negative. d. Economic profit earned by firms is positive, but not zero or negative.