Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product.
B) the marginal factor cost of every input equals that input's marginal revenue product.
C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input.
D) equal amounts of each input are employed.
B
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Two firms are introducing an improved version of their toothpastes. They must decide whether or not to advertise their products. The table above gives the payoff matrix in terms of the economic profits they expect in each case
The payoffs are in terms of millions of dollars. a. What is the Nash equilibrium for the game? b. If they could cooperate, what strategy would they prefer? What would be the payoff?
According to your text, open market operations
A) can be a difficult and delicate task. B) are free from political pressures. C) are designed solely in the national interest. D) have failed to be effective ever since the U.S. has gone off the gold standard.
The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in:
a. GDP. b. disposable personal income. c. saving. d. none of these.
Which of the following pairs would most likely be confused for each other?
a. causation and hypothesis b. composition and hypothesis c. correlation and composition d. causation and correlation