All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A) an individual firm's demand for labor is its MRP curve.
B) under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price.
C) an increase in the market demand for a given product decreases the product's price.
D) the demand for labor is a derived demand.
C
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Which of the following will cause equilibrium output in a market to increase?
a. A decrease in firms’ variable costs. b. An outward shift of the demand curve. c. Entry of more firms into the market. d. All of the above.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
If the government regulates a monopoly's price below the socially efficient level, then:
A. deadweight loss decreases and there is a surplus of output. B. deadweight loss increases and there is a surplus output. C. deadweight loss increases and there is a shortage of output. D. deadweight loss decreases and there is a shortage of output.
Which of the following is not a feature of common stock?
A. Stockholders receive regular fixed payments on their shares. B. Stock holders are residual claimants. C. Stockholders have limited liability. D. Stockholders have voting rights.