The marginal productivity principle implies that
a. quantity demanded of an input normally declines as the input price falls.
b. at equilibrium, profit from the last unit of input will be zero.
c. for maximizing profit, marginal revenue product should be greater than price.
d. marginal productivity of inputs increase when price of inputs increase.
b
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The marketing people for AT&T believe that if they lower the price of long-distance phone calls by 5 percent, their quantity demanded will increase by 15 percent. If they are correct in their belief, then
A) the demand for long-distance phone calls is price inelastic. B) the total revenue from long-distance phone calls will increase if they lower the price. C) the demand for long-distance phone calls is income elastic. D) the total revenue from long-distance phone calls will decrease if they lower the price.
Jonathan quit his job as a shoe salesman and is actively searching for employment in the field in which he has a bachelor's degree, accounting. Jonathan would best be categorized as
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.