The marginal revenue product of an hour of labor used in steel production is equal to
A. its marginal physical product times the hourly wage rate.
B. its marginal physical product times the price of steel.
C. the hourly wage rate.
D. its marginal physical product divided by the price of steel.
Answer: B
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Monetary policy designed to offset an inflationary gap would:
a. Increase interest rates and increase aggregate demand. b. Increase interest rates and decrease aggregate demand. c. Decrease interest rates and increase aggregate demand d. Decrease interest rates and decrease aggregate demand.
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The success of a predatory pricing strategy in an oligopolistic market depends on all of the following except:
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