In general, when the price of a variable factor of production increases:
A. the profit-maximizing price falls.
B. total cost falls.
C. the profit-maximizing level of output falls.
D. the profit maximizing level of output rises.
Answer: C
Economics
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Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
Economics
The firm's gain in profit from hiring another worker is
A) the marginal revenue product of the extra worker. B) the extra output of the extra worker. C) the reduction in costs from hiring another worker. D) the difference between marginal revenue product and the wage of the worker.
Economics