In the employment of any resource, a firm should
A) equate marginal revenue product with the cost of the additional resource.
B) hire each input unit that adds more to revenue than it adds to costs.
C) hire each input unit provided its marginal physical product is greater than zero.
D) A and B are both correct.
Answer: D
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According to the infant industry argument, a new domestic industry needs protection because it has higher costs than established foreign competitors
a. True b. False Indicate whether the statement is true or false
The balance of payments is an accounting statement known as a:
a. trial balance. b. depreciation account. c. balance sheet. d. trade account. e. reconciliation statement.
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity supplied will be ________ microwaves.
A. 5,000 B. 4,800 C. 4,500 D. 4,000
A firm that has market power has the ability:
A. to affect the price of its own product. B. to conduct illegal activities without fear of prosecution. C. to command consumer to buy any quantity from them. D. to drive its competition out of the market.