When Maxwell Fruit Drinks increases the number of workers it employs from 20 to 25, its total labor costs rise from $10,000 to $15,000 a week. We know then that
a. Maxwell should never have hired the last five workers
b. Maxwell should continue hiring workers
c. diminishing returns have set in
d. the marginal revenue product curve is decreasing
e. the marginal labor cost is $1,000
E
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Refer to the scenario above. What is the future value of John's deposit after three years?
A) $2,590.06 B) $2,660.32 C) $2,708.08 D) $2,990.54
Looking at the components of the income approach we see that
A) compensation of employees is the largest category. B) consumption is the largest category. C) profits are the largest category. D) rental income is the largest category.
It is costly to purchase a new car every two or three years because
A) the financing cost is significantly higher for a new car than for a used one. B) the gasoline tax for the fuel of a new car is generally higher than for a used one. C) the maintenance cost of a new car is generally higher than for a used one. D) a new car will depreciate rapidly in value during the first few years of use.
When would it make sense for a factory that is losing money to remain in operation?
(A) If the revenue from the goods being manufactured exceeds the operating cost. (B) If marginal revenue is equal to marginal cost. (C) If total cost of the goods being manufactured exceeds the operating cost. (D) If marginal product of labor becomes negative.