Explain the marginal principle.
What will be an ideal response?
The marginal principle says to increase the level of an activity as long as its marginal benefit exceeds its marginal cost, and to choose the level at which the marginal benefit equals the marginal cost.
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The following table provides information about production at the XYZ-TV Company.Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000How many workers will XYZ-TV Company hire if the going wage for TV production workers is $32,000?
A. 0 B. 1 C. 2 D. 3
Which of the following best describes the assumption that monetarists make regarding velocity?
a. It is fairly predictable in the short run and certainly in the long run. b. It is not possible to predict velocity in the short or long run. c. It is variable in the long run but predictable in the short run. d. It is constant in the long run but variable in the short run.
An inefficient provider will have difficulty competing with efficient rivals.
a. true b. false
Apple improves the resolution of its iPhone camera by doubling the number of megapixels. This is an example of vertical differentiation.
Answer the following statement true (T) or false (F)