If a landscaper can hire an additional employee for $300 weekly, what is one concept the landscaper could use to determine whether hiring this employee is a good idea?
What will be an ideal response?
Marginal product can help a business owner decide whether or not to add additional input, by showing whether the additional input would increase output enough to justify the hiring. If the additional employee's output is worth at least $300, then hiring the employee is a good idea. In order to compare the marginal product to the marginal cost, the landscaper would need to know something about the marginal revenue (or market price).
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A consumer's demand for a product increases because other consumers own it. This is an example of: a. bandwagon effect
b. a negative network externality. c. snob effect. d. none of the above
The new classical school of thought is usually associated with the theory of rational expectations
a. True b. False Indicate whether the statement is true or false