At the profit-maximizing level of employment, the monopsonist
A) pays a wage equal to MRP.
B) pays a wage greater than MRP.
C) pays a wage less than MRP.
D) pays a wage equal to MFC.
C
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In the figure above, if pizza production increases to 15,000 pizzas a day, then marginal benefit ________ marginal cost, and ________ occurs
A) exceeds; overproduction B) exceeds; underproduction C) is below; overproduction D) is below; underproduction E) exceeds; efficient production
Possibly, the most serious flaw in the Medicare system is the fact that
a. the deductible is too high for most elders to afford. b. it provides no real protection against catastrophic losses resulting from unusually long hospital stays. c. the definition of an episode of illness can lead to patients paying the deductible more than once during the calendar year. d. coverage for outpatient drugs is poor. e. elders are required to pay monthly premiums to participate in Part B.
When referring to "marginal" changes, the economic focus is on:
A. changes which affect only a few people or products. B. large changes on the low end. C. graduated changes on the high end. D. small or incremental changes.
Refer to the table below. If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4 and the price of product Y is $2. The income of the consumer is $20.
A. A first unit of X followed by a first unit of Y
B. A first unit of X followed by a second unit of X
C. A first unit of Y followed by a first unit of X
D. A first unit of Y followed by a second unit of Y