If the price of output increases, the marginal revenue product curve will shift ________ and the profit-maximizing quantity of labor demanded will ________.
A. up; increase
B. up; decrease
C. down; increase
D. down; decrease
Answer: A
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Since 1998, the U.S. federal government has continuously run a budget surplus
Indicate whether the statement is true or false
In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, then the firm will produce
A) 8 million units and set a price of $21 per unit. B) 12 million units and set a price of $18 per unit. C) 16 million units and set a price of $16 per unit. D) nothing unless the government provides subsidies to cover its losses.
The practice of charging customers different prices for the same good is called:
A. price marking. B. customer discrimination. C. group discounting. D. price discrimination.
Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the ________.
A. Treasury bill rate B. discount rate C. federal funds rate D. prime rate