If a firm is using a resource hired in a perfectly competitive market, and if the marginal resource cost is less than its marginal revenue product,
a. more of the resource should be used
b. less of the resource should be used
c. the firm should pay a lower price for the resource
d. the firm should pay a higher price for the resource
e. the firm is using the optimal amount of the resource
A
You might also like to view...
During the American Revolution, Washington’s army nearly starved to death after price controls were enacted to “help” buy food for the army at affordable prices. The Continental Congress later passed a law that
A. exhorted the public to obey the law and help supply food to the army. B. passed tax increases to punish those who refused to sell the food. C. revised the American Law of Supply and Demand. D. overrode local ordinances and essentially repealed the price controls. E. called for the repeal of other price control measures.
Refer to Figure 13-3. Which of the points in the above graph are possible long-run equilibria?
A) B and D B) A and D C) A and C D) A and B
A matched sale-purchase agreement of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
How often should a firm address 'social responsibility'?
A) never. B) all the time. C) once a year. D) over the long-run.