Which of the following is true of marginal revenue product (MRP) and marginal product (MP)?
a. MRP = MP ? price, whether the firm is a price searcher or not.
b. MRP = MP ? price only if the firm is a price searcher.
c. MRP = MP ? price only if the firm sells in a perfectly competitive market.
d. MRP = MP ? marginal cost only if the firm is a price searcher.
e. MRP = MP/price only if the firm is a price taker.
C
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, unemployment equals ________ workers
A) 100 B) 300 C) 400 D) 500 E) 200
Which of the following would shift the supply curve for energy drinks to the left?
A) a decrease in the number of firms that produce energy drinks B) an increase in consumer income (assuming that energy drinks are normal goods) C) a decrease in the expected future price of energy drinks D) a decrease in the price of an input used to produce energy drinks