Firms price discriminate to maximize total revenue
Indicate whether the statement is true or false
False. Firms price discriminate to increases profit.
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Which of the following most accurately states the economic significance of exchange?
a. Physical goods have value because they exist; exchange can neither increase nor decrease their value. b. Production of physical goods creates value; exchange merely redistributes this value. c. Exchange creates value by moving goods from parties who value them less to parties who value them more. d. Exchange reduces value since it consumes resources without adding to the physical supply of goods.
The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit.
If the wage rate is $200, how many units of labor will the firm employ?
A. 3 B. 4 C. 5 D. 6 E. 0, the firm shuts down