A profit-maximizing firm will use additional units of resources for production until:
A. Total, average, and marginal cost are equal
B. Total, average, and marginal revenue are equal
C. The marginal revenue product equals the marginal resource cost
D. The marginal revenue product is greater than the marginal resource cost
C. The marginal revenue product equals the marginal resource cost
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The price elasticity of a horizontal demand curve is always
A. infinitely large. B. zero. C. one. D. increasing as price increases.
Conservatives usually favor increasing government spending to increase aggregate demand
a. True b. False Indicate whether the statement is true or false
You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a very good show and place only a $10 value on seeing the remainder of the show. Alternatively you could leave the theater and go home and watch TV or read a book. You place an $8 value on watching TV and a $6 value on reading a book
a. You should leave the theater since the net benefit from seeing the remainder of the show is -$20, while going home will earn you at least $8 of satisfaction. b. You should stay and watch the remainder of the show. c. You should go home and watch TV. d. You should go home and read a book.
Rent seeking refers to ______.
a. politicians trading votes b. exempting homeowners from certain taxes c. using resources to gain political favor d. choosing not to vote unless it counts