T/F one problem with revenue-based incentive schemes is that they do not generally provide an incentive to maximize profits
What will be an ideal response?
true
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Relative to the demand curve for low-skilled workers, the demand curve for high-skilled workers lies
A) to the right. B) to the left. C) below. D) in the same place.
Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A. steal more and produce less. B. steal less and produce less. C. produce more and steal more. D. produce more and steal less.
The fact that a firm is using a capital-intensive method of production means that input substitution is not possible
Indicate whether the statement is true or false
Under the total revenue and total cost approach to profit maximization,
a. firms equate total cost and total revenue in order to maximize profit b. the profit-maximizing output level is equivalent to the total revenue-maximizing output level c. when total costs are minimized, profits are maximized d. firms choose the output level where TR - TC is greatest e. total cost must always exceed total revenue in the long run