Figure 17.2 depicts a firm's marginal revenue product curve. Suppose that we observe the firm demanding three workers. If the firm is maximizing its profit, the wage rate must be between ________ and ________.
A. $30; $35
B. $25; $30
C. $20; $25
D. $15; $20
Answer: C
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Which of the following statements is true?
A. Accounting profit is always positive. B. Economic profit is always positive. C. Accounting profit is greater than or equal to economic profit. D. Economic profit is greater than or equal to accounting profit.
If in monopolistic competition in the short run, firms make ________ profits, then in the long run, new firms will enter the market. The ________ each individual firm's product will ________
In the new long-run equilibrium firms will make ________ profit. A) economic; demand for; decrease; zero economic B) normal; demand for; increase; zero economic C) economic; supply of; decrease; an economic D) economic; supply of; increase; zero economic
For automobile demand in the U.S., the income response tends to be larger in the:
A) short run. B) long run. C) The income response is the same in the long run and the short run. D) We do not have enough information to answer this question.
New growth theory is concerned with
A) finding a good way to measure economic growth. B) increasing the savings rate in the U.S. C) understanding the forces that increase productivity. D) understanding how compounding works.