Firms will employ an input up to the point where
A. the input's price equals its marginal product.
B. its marginal cost equals its marginal product.
C. the input's price equals its marginal revenue product.
D. the wage rate equals the productivity of capital.
Answer: C
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GDP would be a better measure of economic well-being if it included:
A. the value of leisure. B. the market value of final goods. C. the costs of education. D. the total value of intermediate goods.
Patty spends $10 a week on bagels and soda. The price of a bagel is $2 and the price of soda is $1 a can. Patty buys 2 bagels and 6 cans of soda. Her marginal utility from bagels is 20 units
The price of a bagel rises to $3 and the price of a can of soda rises to $1.50. Patty now buys ________ bagels and her marginal utility from bagels ________. She buys ________ cans of soda and her marginal utility from soda ________. A) fewer than 2; increases; fewer than 6; increases B) 2; is 20 units; 6; is 10 units C) fewer than 2; is 20 units; fewer than 6; is 10 units D) fewer than 2; decreases; fewer than 6; decreases
The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that:
A) there is little or no potential for input substitution in the grocery store business. B) transportation costs are insignificant in the grocery store business. C) land is a relatively inexpensive input in the grocery store business. D) labor is relatively inexpensive in the grocery store business.
Behavioral economists:
A. rely primarily on data drawn from the real world. B. typically assume that each individual has well-defined objectives, that there is a connection between an individual's objectives and actions and that the actions chosen affect an individual's well-being. C. avoid mathematical models of behavior, as they do not adequately describe real world actions. D. typically assume that each individual has well-defined objectives and avoid mathematical models of behavior, as they do not adequately describe real world actions.