A profit-maximizing firm in a competitive market will continue to hire more workers when
A) the marginal factor cost exceeds the marginal revenue product of the additional workers.
B) the marginal factor cost equals the marginal revenue product of the additional workers.
C) the marginal factor cost is less than the marginal revenue product of the additional workers.
D) the marginal factor cost is less than zero.
C
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An increase in supply will occur when
A) the supply curve shifts downward to the right. B) the supply curve shifts upward to the left. C) the demand curve shifts downward to the left. D) the demand curve shifts upward to the right.
You have won the lottery. There are two payment options for you. The first option is a lump sum payment of $10 million that you will receive immediately. The second option is an annual payment of $1 million for each of the next 12 years
Assume there is no inflation. How would you make a decision between the two options?