To maximize profit, a competitive firm hires workers up to the point of intersection of the
a. marginal product curve and the wage line.
b. value of marginal product curve and the wage line.
c. value of marginal product curve and the marginal revenue curve.
d. total revenue curve and the wage line.
b
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What is net marginal revenue?
A) The same as marginal profit. B) The additional revenue the firm earns from an extra unit of an internally produced intermediate input. C) The additional revenue the firm earns from producing one more unit of output. D) The additional revenue the firm earns from selling one more unit of output.
In general, the smaller the price elasticity:
a. the smaller the responsiveness of price to changes in quantity. b. the smaller the responsiveness of quantity to changes in price. c. the larger the responsiveness of price to changes in quantity. d. the larger the responsiveness of quantity to changes in price.