The marginal revenue product of a resource
a. is defined as the marginal product of the resource multiplied by the resource price.
b. simply means that a firm should add to its capital stock as long as competition requires it.
c. equals the extra output produced by an additional unit of the resource multiplied by the marginal revenue per unit of that output.
d. equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.
C
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If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the second candy bar is
A) 25 utility units. B) 20 utility units. C) 5 utility units. D) unknown as more information is needed to determine the answer.
Third-party beneficiaries are called:
a. polluters. b. property owners. c. free riders. d. efficient market. e. losers.
The Fed relies on three instruments to control the money supply. They are
a. taxes, reserve requirements, and the discount rate b. government spending, the discount rate, and open market operations c. reserve requirements, the discount rate, and currency liability d. reserve requirements, the discount rate, and open market operations e. reserve requirements, taxes, and open market operations
A perfectly competitive firm facing a price of $50 decides to produce 500 widgets. Its marginal cost of producing the last widget is $50. If the firm's goal is maximize profit, it should:
A. shut down. B. continue producing 500 widgets. C. produce fewer widgets. D. produce more widgets.