If the competitive firm maximizes profit by selecting labor rather than output, it will earn greater economic profit
Indicate whether the statement is true or false
False. Whether the firm maximizes profit by selecting output or labor, the resulting profit is the same. Since MC = w/MP, setting MC = p is the same as setting w = p ? MP.
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Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
A) pound of vegetables B) pounds of vegetables C) 1.6 pounds of vegetables D) 16 pounds of vegetables
The four key markets that coordinate the circular flow of income are
What will be an ideal response?
Suppose that when a perfectly competitive firm produces 500 units of output a day, it earns an economic loss. If the price of each unit of output is $1.50, then, in the short run, it's clear that this firm:
A. should shut down. B. is not maximizing its profit. C. should produce more than 500 units a day. D. should not shut down if its total variable cost is less than $750.
Which of the following is NOT a characteristic of a market in equilibrium?
A. Buyers can buy as many units as they want at the equilibrium price. B. Neither buyers nor sellers want the price to change. C. Sellers can sell as many units as they want at the equilibrium price. D. There is neither excess supply nor excess demand.