A firm that can determine the price-output combination in order to maximize profit is known as a
A) price searcher.
B) price taker.
C) demand searcher.
D) cost taker.
Answer: A
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As a perfectly competitive firm produces more and more of a good, its economic profit
A) constantly increases. B) constantly decreases. C) first decreases, then increases. D) first increases, then decreases. E) does not change.
The major reason the market demand curve for labor slopes downward is because:
a. at lower wage rates, workers are less willing to supply labor to the market. b. at lower wage rates, workers are more willing to supply labor to the market. c. of the law of diminishing marginal product d. of the law of diminishing marginal resource cost.
Suppose the prices of agricultural products such as corn and soybeans increase. What is the effect of these price increases on the marginal product of the 1,000th farm worker? What is the effect on the value of the marginal product of the 1,000th farm worker?
An increase in the number of corporations in a portfolio from 110 to 120 reduces
a. market risk by more than an increase from 1 to 10. b. market risk by less than an increase from 1 to 10. c. firm-specific risk by more than an increase from 1 to 10. d. firm-specific risk by less than an increase from 1 to 10.