The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. Initially the market price of peanuts is $2.00 per pound
If the market price of peanuts fall to $1 per pound and a worker costs $800 per month, how many workers will Peter employ to maximize his profit? A) zero
B) two
C) three
D) four
B
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On a diagram where the interest rate and the quantity of money demanded are shown on the vertical and horizontal axes respectively, the total demand for money can be found by:
A. horizontally adding the transactions and the asset demand for money. B. vertically subtracting the transactions demand from the asset demand for money. C. horizontally subtracting the asset demand from the transactions demand for money. D. vertically adding the transactions and the asset demand for money.
In a monopoly labor market, the optimal union wage can be read off the marginal revenue product curve.
Answer the following statement true (T) or false (F)