A profit-maximizing firm will hire additional units of labor until
A. the extra cost from hiring the last worker equals the cost of the product.
B. the additional cost of hiring the last worker equals the additional revenue generated by that worker.
C. the additional cost of hiring the last worker equals the marginal factor cost of the worker.
D. the extra revenue from hiring the last worker equals the marginal physical product of labor.
Answer: B
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Which of the following best represents collectivization costs?
A) Dinesh has to spend time and effort to make sure that the chemical factory is living up to the agreed upon bargain that it will reduce the pollution it is releasing into the local river by 50 percent. B) Laila needs to come up with enough cash to pay the owners of the paper manufacturing plant, its attorneys, accountants, and negotiators so that a bargain can be reached with the paper manufacturer to reduce air pollution. C) Esperanza has to spend time and effort locating and organizing all the other people who have been adversely affected by the strong odors emanating from the local slaughterhouse in order to initiate the bargaining process. D) Rafael has to spend time determining whether the fertilizer manufacturer, the lead smelter, or the oil refinery is the cause of pollution seeping into the groundwater in his local community.
As the capital-labor ratio increases, break-even investment
A) increases at a decreasing rate. B) increases at an increasing rate. C) increases at a constant rate. D) remains unchanged.
Some economists argue that the increases in aggregate demand for output spurred by wartime spending, complemented by the strong spending in the private sector, impacted the U.S. economy by
(a) increasing production and employment. (b) increasing employment and income. (c) increasing income, thus fueling additional spending. (d) contributing to all of the above.
An online dating firm is
A) a platform in a shared-input market. B) an end user in a matchmaking market. C) a platform in a matchmaking market. D) an end user in a shared-input market.