As the price of a product falls, the demand for the product increases, ceteris paribus.
Answer the following statement true (T) or false (F)
False
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When marginal benefit exceeds marginal cost in a market,
A) only consumer surplus is reduced. B) only producer surplus is reduced. C) consumer surplus and producer surplus are not affected compared to when production is such that marginal cost equals marginal benefit. D) the deadweight loss is negative. E) None of the above answers is correct.
Which of the following will facilitate the enforcement of a cartel?
A) most-favored-customer clauses B) reports of bids on government contracts C) meet the competition or price match D) All of the above
Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue product of the last worker hired must be
a. $1 b. $1.50 c. $4 d. $5 e. $20
Which of the following quotations best captures the idea of opportunity cost?
a. "Opportunity knocks but once." b. "Every choice involves a sacrifice." c. "Let's not ask for the moon; we have the stars." d. "Fools rush in where wise men fear to tread." e. "All that glitters is not gold."