The following is a monopolist’s employment schedule. What is the firm’s marginal resource cost when it hires the eleventh worker?
What will be an ideal response?
The MRC of the 11th worker is $48. The total resource cost of 10 workers is $150. The total resource cost of 11 workers is $198. The difference is MRC for $48.
You might also like to view...
If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used for growing rutabagas will
A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price. B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line. C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward. D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward.
Refer to Figure 9-1. Under autarky, the deadweight loss is
A) $0. B) $30. C) $15. D) $40.
Unemployment due to the length of time it takes to find employment upon entering the labor force or voluntarily between jobs is called
A. cyclical unemployment. B. frictional unemployment. C. structural unemployment. D. natural unemployment.
Which of the following is true?
A. In Cournot oligopoly markets, firms produce an identical product at a constant marginal cost and engage in price competition. B. In oligopoly markets, a change in marginal cost never has an effect on output or price. C. In Bertrand oligopoly markets, each firm believes that its rivals will hold their output constant if it changes its output. D. In Sweezy oligopoly markets, each firm believes rivals will cut their prices in response to a price reduction, but will not raise prices in response to price increases.