We measure a person's productive contribution in a market system by
A) the marginal factor cost theory of the firm.
B) the profit maximization theory of the firm.
C) the marginal revenue product theory of wage determination.
D) the egalitarian theory of wage determination.
C
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Suppose that you are earning the maximum amount of money within the 28% tax bracket. If you receive a $1000 raise next year this will place you in the 33% tax bracket. Calculate your tax burden and the amount of increase in your "take-home" pay
What will be an ideal response?
The financial sector is very important to the economy.
Answer the following statement true (T) or false (F)
Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will
A. attract other firms to enter the industry, causing the existing firms' profits to shrink. B. cause firms to standardize their product to limit the degree of competition. C. reduce the excess capacity in the industry as firms expand production. D. make the industry allocatively efficient as each firm seeks to maintain its profits.
Graphically, producer surplus is the:
A) difference between the demand curve and the price a consumer pays. B) difference between the supply curve and the price a consumer pays. C) difference between total cost and total revenue. D) product of price of a good and quantity sold.