The table above shows the total product schedule for The X Firm. The average product of labor is maximized at ________ workers because ________
A) 4; productivity is maximized when the 4th worker is employed
B) 3; output starts to decrease with the 4th worker
C) 5; output is maximized with the 5th worker
D) 4; the marginal product of labor is increasing with the 4th worker
E) 5; the APL exceeds the MPL for the 5th worker
A
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Price ceilings in the U.S. on retail gasoline sales in the 1970s caused
A) massive and prolonged shortages. B) increased advertising of gasoline. C) longer hours of operation at most service stations. D) poor people to be assured of an adequate supply of gasoline.
The relevant market for a firm consists only of firms operating within the same industry
Indicate whether the statement is true or false
A market in which finished goods and services are exchanged is a:
a) Product market. b) Financial market. c) Intermediate-goods market. d) Factor market.
If a firm expects that the price of its product will be higher in the future than it is today, then
A) the firm will go out of business. B) the firm has an incentive to increase supply now and decrease supply in the future. C) the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future. D) the firm has an incentive to decrease supply now and increase supply in the future.