The marginal revenue product of labor declines as the number of workers increases because
A) firms hire the most efficient workers first and the least efficient workers last.
B) firms must lower prices for the final product when they want to sell more units.
C) of the law of diminishing marginal product.
D) of diseconomies of scale.
C
Economics
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The income effect from a fall in the price of a gallon of gasoline is shown in the above figure by the movement from
A) point A to point C. B) point A to point B. C) point B to point C. D) point A to point B and then to point C.
Economics
The idea that similar foreign and domestic goods, or baskets of goods, should have the same price when priced in terms of the same currency is called
A) equity. B) purchasing power parity. C) efficiency. D) the tragedy of the commons.
Economics