The price of apples is currently $1 per pound. If apples are sold in a competitive market and the price of apples increases to $2 per pound, the marginal revenue product (MRP) of labor used to produce apples would
A. double.
B. change in a manner that cannot be determined without additional information.
C. be cut in half.
D. not change.
Answer: A
You might also like to view...
Answer the following statements true (T) or false (F)
1) The expected value of an outcome takes into consideration the associated risk. 2) The greater the risk associated with an outcome and the more risk averse the decision maker, the more likely a high insurance premium will be paid. 3) Because increased costs reduce the return on investment, shareholders may prefer managers make decisions based on the risk and not on the expected profit. 4) Placing all of your investment funds into one stock is an example of diversification. 5) Plaintiffs can be risk averse.
The traditional role of savings and loan associations has been to
A. finance business purchases of capital goods. B. purchase corporate stocks on behalf of its depositors. C. make installment loans to consumers. D. make mortgage loans on houses.
When considering imports and exports, economists include the ________ as a component of the GDP
A) net exports B) total imports C) gross exports D) total exports
The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward.
B) favorable supply shock, shifting the short-run aggregate supply curve leftward.
C) adverse supply shock, shifting the short-run aggregate supply curve rightward.
D) adverse supply shock, shifting the short-run aggregate supply curve leftward.