If the marginal revenue product of an input exceeds the marginal factor cost of the input, the firm
A. should increase its use of the input.
B. is maximizing profit.
C. is not on its marginal cost curve.
D. should hire less of the input.
Answer: A
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Your text suggests the Fed
A) is a slave to Congress. B) is totally free from political pressure. C) probably cannot pursue monetary policies that completely contradict the federal government's fiscal policies. D) is a hoax and a shame that ought to be abolished.
Refer to Figure 15-4. What is likely to happen to this monopoly in the long run?
A) It will be regulated by the government because of its excess profits. B) New firms will enter the market to eliminate its profits. C) It will expand its output to take advantage of economies of scale so as to further increase its profit. D) As long as there are entry barriers, this firm will continue to enjoy economic profits.
All railroads were private enterprises with no government influence
Indicate whether the statement is true or false
Some people view cosmetic surgery (c) and facials (f) as perfect substitutes as measured by the utility function U(c,f) = 5c + 10f. What is the marginal utility of cosmetic surgery?
A) MU = 5. B) MU = 10. C) MU = 15. D) None of the above.