If hiring the 7th worker increases total product by 5 units and the price of each unit is $2,
a. the firm should not hire the 7th worker as MB a
c. the firm should hire the 7th worker as MB>MC
d. the firm should not hire the 7th worker as MB
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A typical corn farmer won't use cost-plus-markup pricing because
A) his costs are low enough. B) he isn't interested in maximizing net revenue. C) he strives for markdown pricing, not markup pricing. D) he has no control over the market price of corn.
Although the pegged exchange rate between the yuan and the U.S. dollar has undervalued the yuan, China has been reluctant to abandon the peg for fear that abandoning the peg would
A) increase exports and increase the current account deficit. B) reduce capital inflows. C) reduce exports and reduce economic growth. D) increase Chinese holdings of dollars.