Suppose at the current level of labor used, MRP = $100 and MFC = $150. To maximize profits, the firm should
A) hire more labor.
B) reduce the level of labor.
C) maintain the current level of labor.
D) expand production.
B
You might also like to view...
Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
What is the equilibrium outcome of this game?
A. Player 1 and Player 2 both choose Up. B. Player 1 and Player 2 both choose Down. C. Player 1 chooses Down and Player 2 chooses Up. D. Player 1 chooses Up and Player 2 chooses Down.
Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, producer surplus will
A) fall by $200. B) fall by $300. C) remain the same. D) rise by $200. E) rise by $300.
Suppose you are seeking a real wage increase of 2% and you expect inflation to be 3%. What nominal wage increase should you seek?
a. 2.0% b. 3.0% c. 1.0% d. 5.0% e. 1.5%
Which statement is TRUE?
A. There is no such thing in the United States as a permanent underclass. B. There is no relationship between poverty and the twin problems of crime and drugs. C. Poverty, crime, and welfare dependency have all fallen since the mid-1990s.