A firm's marginal cost is $82, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000.
B) between $40,000 and $40,050.
C) between $40,050 and $40,080.
D) greater than $40,080.
D
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A monopolist faces a market demand curve with a constant elasticity of -2. The monopoly's production function is Q = 4L and its output price is given by p. What is the monopoly's marginal revenue product of labor function?
A) MRPL = 2p B) MRPL = 4p C) MRPL = 10 - 2p D) MRPL = 5 + 3.5p
The theory of consumer choice provides the foundation for understanding the
a. structure of a firm. b. profitability of a firm. c. demand for a firm's product. d. supply of a firm's product.
In general, as wages increase:
A. the benefit of working goes down. B. people are willing to work more. C. it does not affect people's willingness to work. D. people are willing to work less.
In the News article, "Are Profits Bad?" most Americans feel that the profit motive
A. Is good. B. Is bad. C. Do not motivate better product results and lower prices. D. Cause firms to ignore social needs.