The amount of labor a firm employs depends on
A) the market wage.
B) the market price for the good produced.
C) Both A and B.
D) None of the above.
C
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Answer the following statement(s) true (T) or false (F)
1. Cost-effectiveness requires that resources are allocated such that the additional benefits to society are equal to the additional costs. 2. Assume that the marginal revenue associated with the 12th unit of output is $25 and the marginal cost is $14. As a result, the firm should produce more, because the marginal profit at that output level is greater than zero. 3. When a profit-maximizing firm increases output to Q = 50, its MR= $100 and MC = $124, meaning that total profitfalls by $24, so the firm should contract production. 4. In perfect competition, the firm faces a perfectly inelastic demand. 5. The demand faced by the perfectly competitive firm is perfectly elastic, meaning that price and marginal revenue are equal.
The Federal Reserve's narrowest definition of the money supply is
a. M0. b. M1. c. M2. d. M3.
The table above gives the demand for a monopolist's output. What is the total revenue in when 3 units of output are produced?
A) $21 B) $20 C) $18 D) $6
A leftward shift of the savings curve CANNOT be caused by a(n):
A. positive shock to consumption. B. increase in the government budget deficit. C. reduction in taxes. D. increase in the real interest rate.