Marginal analysis involves undertaking an activity
A) only if its marginal costs are greater than its marginal benefits.
B) until its marginal costs start declining.
C) until its marginal benefits equal marginal costs.
D) only when its marginal benefits are positive.
C
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A table which shows the quantities of a particular good or service that consumers are willing to purchase at various prices is known as a:
A. demand schedule. B. demand figure. C. demand curve. D. demand graph.
The information on a demand curve is also on a(n)
A. budget constraint. B. indifference curve. C. income-consumption curve. D. price-consumption curve.
A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $1 a bushel, the wage rate is $12, the farmer employs six workers and the marginal product of the sixth worker is 10. What would you advise this farmer to do?
A. Increase employment because the wage paid is less than the marginal revenue product. B. Reduce employment because the wage paid is greater than the marginal revenue product. C. Reduce the product price so that the wage and marginal revenue product will be equal. D. Do nothing because the wage rate and the marginal product of the last worker hired are equal.
There is a trade-off between:
A. Saving and investment B. Current production and future consumption C. Current consumption and future consumption D. Consumption and spending