Marginal revenue product is defined as the
a. change in total output that results from the employment of an additional unit of a resource
b. change in total product that results from the employment of an additional unit of a resource
c. change in total revenue that results from the employment of an additional unit of a resource
d. change in resource employment that results from a change in total output
e. change in marginal revenue that results from a change in the employment of an additional unit of a resource
C
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A firm experiences ________ when its ________ downward as output increases
A) diseconomies of scale; average total cost curve slopes B) economies of scale; long-run average cost curve slopes C) diminishing marginal returns; long-run average cost curve slopes D) diminishing marginal returns; average total cost curve shifts
A shoe producing firm decides to acquire a firm that produces shoe laces. This implies that
a. The firm's aggregate demand will be less elastic than the individual demand b. The firm's aggregate demand will be more elastic than the individual demand c. The firm's aggregate demand will be of the same elasticity as the individual demand d. None of the above
If a nation wants to get the most out of its resources, each productive assignment should be carried out by those persons who
A) least enjoy performing the productive activity. B) can complete the productive activity most rapidly. C) have a comparative advantage in the productive activity. D) have the highest opportunity cost.
The reason economists consider monopoly to be socially undesirable is that monopolists:
A. can charge any price they want. B. produce less than the socially optimal level of output. C. earn too much economic profit. D. exploit the inelastic nature of demand.