If the value of the marginal product of labor is less than the wage, then the firm could
a. increase profit by hiring additional labor.
b. increase profit by reducing the amount of labor hired.
c. increase revenue by lowering output.
d. reduce total cost by hiring additional workers.
b
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Which of the following are policy tools used by the Federal Reserve? i. the federal personal income tax ii. open market operations iii. changing the required reserve ratio
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
________ is the difference between the willingness to pay and the price paid for a good
A) Producer surplus B) Consumer surplus C) Seller's profit D) Revenue
If countries have similar factor endowments and productivities, what type of trade are they most likely to have?
What will be an ideal response?
Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000 . If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?
a. $10,000. b. $25,000. c. $30,000. d. $45,000. e. $70,000.