Ajax has just discovered that the marginal revenue product generated by the last worker hired was $75 while the marginal factor cost was $95. What should Ajax do?
A) Leave the level of production unchanged.
B) Increase the amount produced.
C) Reduce the amount produced.
D) Collect more information before making a decision.
C
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Since revenue increases with increases in price when demand is relatively inelastic, monopolists produce on the inelastic part of demand.
Answer the following statement true (T) or false (F)
If devaluation improves only the BOP, rather than the BOT, this implies that the capital account must have improved following a devaluation
Indicate whether the statement is true or false
Which of the following will increase the demand for U.S. products in the international market?
a. An increase in the average price level in the U.S. b. A depreciation of foreign currency c. A depreciation of the U.S. dollar d. A tariff imposed by the U.S. on imported goods e. A rise in the domestic demand for goods and services
The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the
A. bounded rationality hypothesis. B. ceteris paribus hypothesis. C. individual aggregation hypothesis. D. irrationality hypothesis.