If the marginal product of the second worker hired by a firm is 14 units and the price of the tenth unit of output is $7, then the marginal revenue product
a. of the second worker is $98, regardless of the structure of the product market
b. of the second worker is $98 if the firm is a price searcher in the product market
c. of the second worker is $98 if the product market is perfectly competitive
d. of the tenth worker is $98 if the product market is perfectly competitive
e. of the tenth worker is $98 if the firm is a price searcher in the product market
C
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A rise in the price of a substitute in production for a good leads to
A) an increase in the supply of that good. B) a decrease in the supply of that good. C) no change in the supply of that good; instead there is a change in the quantity supplied. D) a decrease in the quantity of that good supplied. E) no change in either the supply or the quantity supplied of the good.
Which of the following is NOT an example of ways in which microeconomic analysis can help Toyota Motor Corporation its in corporate decision making?
A) Forecasting demand for new automobiles B) Determining how many automobiles to produce in order to maximize profits C) Predicting how competitors will react to the firm's pricing strategy D) Forecasting the effect of Toyota's hiring patterns on the U.S. unemployment rate E) Forecasting the effect of an oil price increase on demand for hybrid autos
The strategy whereby a firm makes most of its own inputs is called:
A. economies of scope. B. horizontal integration. C. economies of scale. D. vertical integration.
Diminishing returns refers to the decrease in
A. average total cost that results from decreases in input prices. B. long-run average cost that results from increases in output. C. profit that results from increases in output. D. marginal product that results from increases in the variable input. E. average product that results from increases in the variable input.