The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product
a. True
b. False
Indicate whether the statement is true or false
True
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When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to make any loans but to hold excess reserves instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $1 million. B) the liabilities of the bank decrease by $1 million. C) reserves increase by $200,000. D) liabilities increase by $200,000.
Which of the following is a good indicator of short-term interest rates in international markets?
A) prime rate B) Treasury bill rate C) LIBOR D) Federal funds rate E) none of the above
Suppose the production function for T-shirts can be represented as q = L0.25K0.75. Show that the production function has constant returns to scale
What will be an ideal response?
Which of the following would most likely NOT be taught in a microeconomics course?
A) changes in prices of automobiles B) the effects of a gas tax on gas purchases C) the effect of an increase in wheat prices on farmers' behavior D) the unemployment rate