Marginal profit is the addition to a firm's total profit from a
a. $1 change in its price.
b. one-unit change in its output.
c. reduction in total cost.
d. reduction in marginal cost.
b
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Bob is looking for work after school, but everywhere he fills out an application, the managers say they always have a lot more applications than open positions. Tom has a law degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use
a. Bob and Tom are both frictionally unemployed. b. Bob and Tom are both structurally unemployed. c. Bob is frictionally unemployed, and Tom is structurally unemployed. d. Bob is structurally unemployed, and Tom is frictionally unemployed.
How many units of labor will this firm hire in maximizing its profits?
What will be an ideal response?