The marginal revenue product of labor declines as the number of workers increases because
A) firms hire the most efficient workers first and the least efficient workers last.
B) firms must lower prices for the final product when they want to sell more units.
C) of the law of diminishing marginal product.
D) of diseconomies of scale.
C
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Which of these is NOT a potential benefit provided by monopolies?
a. more variety of creative works such as movies and books b. greater incentives to develop new technologies and medical cures c. increased consumer surplus as a result of a smaller scale of operations d. lower prices in industries with very large economies of scale
Refer to the above figure. We are currently producing at point c. Which of the following statements is TRUE?
A) Resources are not being efficiently utilized. B) Resources are being efficiently utilized. C) The only way to produce more of Goods X or Y is to have an increase in the amount of resources. D) The Law of Increasing Additional Cost does not hold.
The Herfindahl-Hirschman index is measured by
A) adding the market shares of all firms in an industry. B) adding the squares of the market shares of all firms in an industry. C) squaring the sum of the market shares of the all firms in an industry. D) adding the market shares of the four largest firms in an industry.
The burden of the public debt
a. cannot be passed to future generations b. can be passed to future generations to the extent that it is unevenly distributed between the rich and the poor c. can be passed to future generations to the extent that it is held by foreigners d. can be passed to future generations to the extent that it is held by corporations e. can be passed to future generations to the extent that it is held by state and local governments