In general, when the price of a variable factor of production increases:
A. the profit-maximizing price falls.
B. total cost falls.
C. the profit-maximizing level of output falls.
D. the profit maximizing level of output rises.
Answer: C
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The law firm of Cheep, Cheeper, and Cheeperstill offers a salary of $35,000 to first-year lawyers. This firm will attract applications from
a. exactly the number of lawyers the firm wishes to hire b. many lawyers whose marginal revenue product is greater than $35,000 c. many lawyers whose marginal revenue product is less than $35,000 d. only lawyers whose marginal revenue product is equal to $35,000 e. many lawyers whose marginal revenue cost is equal to $35,000
A welder loses his job because he has been replaced by a robot. He is only able to find another job at a lower skill level. The unemployment described here will most likely result in a _____ for the welder
a. loss of lifetime earnings b. loss of human capital c. deteriorating health condition d. loss of social cohesion
In most cases, a monopolist practicing price discrimination will earn more economic profit.
Answer the following statement true (T) or false (F)
Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria. We can conclude that
A) Bulgaria also has an absolute advantage in producing sandals relative to Finland. B) Bulgaria has a lower opportunity cost of producing sandals relative to Finland. C) Finland has an absolute disadvantage in producing sandals relative to Bulgaria. D) Labor costs are higher for sandal producers in Finland than in Bulgaria.