In the short run, a competitive firm has a marginal product of labor, MPL = 2L-0.25. The output price is $4 per unit and the wage is $5 per hour. The short-run labor demand curve for the firm is
A) 10L-0.25.
B) 8L-0.5.
C) 4L0.25.
D) 8L-0.25.
D
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If the natural monopoly shown in the figure above is unregulated, it will make an economic profit of
A) $2 million. B) $4 million. C) $9 million. D) $0, that is, it earns a normal profit.
According to the text, on a kibbutz in Israel
a. farmers produce oranges no matter what the price b. members are not profit maximizers c. there is no link between an individual's effort and reward d. universal equality is seen as unrealistic e. high-tech manufacturing is not feasible
Which is not a key economic question?
a. What goods and services should be produced? b. How should these goods and services be produced? c. Who consumes these goods and services? d. How should these goods and services be paid for?
The firm's short-run supply curve shows the relationship between the price of a good and the:
A. quantity demanded of that good. B. quantity supplied of that good. C. willingness of consumers to purchase the good. D. firm's capacity output.