If a firm wants to maximize profits it should
A) hire lots of capital and very little labor since labor needs to be trained.
B) hire unskilled labor rather than skilled labor since unskilled labor is cheaper.
C) equate the marginal physical product for each input to the price of the input.
D) equate the marginal revenue product for each input to the price of the input.
D
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Which factor would cause a movement along the demand curve for pizza?
A) an increase in the number of students in town B) a renewed preference for Italian food C) a drop in the price of pizza D) an increase in average income
If the price level increases, we would expect consumers to
a. raise their consumption functions. b. move downward along their consumption functions. c. lower their consumption functions. d. move upward along their consumption functions.