Firms may reasonably make a decision to cut prices if
a. profits are not likely to decline.
b. marginal profit is not negative.
c. MR > MC.
d. All of the above are correct.
d
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Comparable worth advocates have proposed that employers be required by law to pay wage rates equal to the value of the job. The most telling objection to this proposal is that
A) employers will probably resist strenuously and successfully. B) it is in the interest of employers to adjust their hiring so as to make the value of the job equal to the wage rate that must be paid. C) the government has no legal authority to set wage rates in the private sector. D) this would leave little or nothing for profits.
What is the difference between an intermediate good and a final good?
a. Final goods are adjusted for depreciation, intermediate goods are not. b. Final goods are adjusted for changes in the value of the dollar, intermediate goods are not. c. In GDP calculations, final goods are counted as consumption spending, intermediate goods are counted as private investment spending. d. There is no meaningful difference between them. e. Final goods are finished and ready for sale; intermediate goods require further processing.