Refer to the above table. Suppose the price of the good sold is $3 and the marginal factor cost of labor is $300, how many units of labor will the firm hire?
A) 4
B) 5
C) 6
D) 3
B
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The concept of a market is a
A. place where sellers increase their wealth. B. store. C. location where buyers and sellers meet to negotiate prices and determine quantities traded. D. group of buyers and sellers of a good or service.
If MPPa/Pa= MPPb/Pb, then the firm should increase the usage of both input a and input b.
Answer the following statement true (T) or false (F)
In long-run equilibrium under perfect competition,
A. the firm and the industry will have the same cost curves. B. only a very few firms will be earning economic profits. C. the demand curves facing individual firms will fall to the level of minimum AC. D. individual firms will tend to increase their outputs.
Specialization and exchange
a. generally leads to increased production of some goods at the cost of decreased production of other goods b. causes the production possibilities frontier to shift inward c. increases total production of every good only if the total amount of resources also increases d. alters the allocation of production among individuals or nations, but does not alter total production levels e. allows greater total production of every good without an increase in the total amount of resources