An improvement in managerial efficiency in a Fortune 500 corporation increases the marginal revenue product of all people working for the corporation. Assuming that the wage of workers who are hired in a competitive labor market remains constant, the company will
A. fire some workers.
B. hire some workers.
C. neither increase nor decrease the number of workers employed.
D. shut down unless it can lower wages.
B. hire some workers.
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In long-run equilibrium, a competitive firm can earn zero profit only if its technology exhibits
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. regressive returns to scale.
The monopsonist's labor supply curve is the same as the:
a. wage rate. b. marginal revenue product curve. c. marginal product curve. d. market labor demand curve. e. market labor supply curve.
The assumption that people act in their best self-interest means people
a. do what gives them the greatest benefits at the lowest costs. b. are selfish. c. do what gives them the smallest benefits at the greatest costs. d. are irrational.
A reduction in a monopolist's fixed costs would
a. decrease the profit-maximizing price and increase the profit-maximizing quantity produced. b. increase the profit-maximizing price and decrease the profit-maximizing quantity produced. c. not effect the profit-maximizing price or quantity. d. possibly increase, decrease or not effect profit-maximizing price and quantity, depending on the elasticity of demand.