How many units of labor will this firm hire in maximizing its profits?
What will be an ideal response?
The firm will hire 51 units of labor. The marginal cost for 51 workers is $57 ($357 ? $300). The marginal revenue product of 51 workers is $59 ($958 ? $899).
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The creation of private property rights corrects negative externality problems in many cases because they
a. cannot create negative externalities b. create a strong incentive for the private owners to maintain the property c. can force the government to compensate the owners for the externality costs d. encourage people to become free riders e. always lead to the social optimal price and output levels
If the product produced by workers experiences a decrease in demand, the value of marginal product of labor will:
A. decrease, increasing the demand for labor. B. increase, increasing the demand for labor. C. decrease, decreasing the demand for labor. D. increase, decreasing the demand for labor.
Figure 8.4 depicts demand and costs for a monopolistically competitive firm. In the long run we expect:
A. more firms to enter the market. B. the firm's demand curve to shift to the left. C. the firm's average cost of production to increase. D. All of these
The common term for a severe recession is a:
A. downturn. B. depression. C. bottoming out. D. economic adjustment.