Assuming labor is the only variable factor of production, production of a good will not occur
A. as long as the product?s price is less than the marginal revenue product of labor.
B. as long as the marginal revenue product of labor is positive.
C. if society values a good less than it costs firms to hire the workers to produce the good.
D. if the marginal cost of a unit of output equals the marginal revenue product of labor.
Answer: C
You might also like to view...
If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis), then the absolute value of the slope of its production possibility frontier is equal to
A) the opportunity cost of good X. B) the price of good X divided by the price of good Y. C) the price of good Y divided by the price of good X. D) the opportunity cost of good Y. E) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor.
Which of the following statements best describes excess supply, or surplus?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. MR is higher than MC. B. MC is higher than MR. C. ATC is lower than AVC. D. the firm would lose profits producing the units.
The fact that 10 additional nations joined the European Union in May 2004 is an example of deepening
Indicate whether the statement is true or false