A relative price is:
A. the price of a specific good in comparison to the prices of other goods and services.
B. the percentage change in a price index such as the CPI.
C. the rate of inflation.
D. a measure of overall prices at a particular point in time.
Answer: A
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Can a perfectly competitive firm make an economic profit in the short run? Can it incur an economic loss?
What will be an ideal response?
Answer the question on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are
hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information. The marginal revenue product of the second worker is: A. $24. B. $8. C. $15. D. $9.