If a firm is hiring inputs under purely competitive conditions, then any level of output will be produced with the least-cost combination of resources A and B when:
A. MU of A/price of A = MU of B/price of B
B. MRP of A = MRP of B
C. The price of A equals the price of B
D. MP of A/price of A = MP of B/price of B
D. MP of A/price of A = MP of B/price of B
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Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:
a. cause an upward movement along the demand curve for computers. b. cause a downward movement along the demand curve for computers. c. shift the demand curve for computers to the left. d. shift the demand curve for computers to the right.
Which statement is true about supply?
A. There is an inverse relationship between price and quantity supplied B. Supply refers to the amount of inventory that sellers have in their warehouses C. As price decreases, producers are willing to put more of the good on the market for sale D. To entice producers to offer more of a good on the market for sale, price must rise