A firm will continue to hire workers so long as ________ is less than ________.

total product; total cost

marginal product; marginal cost

marginal revenue; marginal cost

average revenue product; average factor cost

marginal factor cost; marginal revenue product

Question 33(Multiple Choice Worth 1 points)

(02.03 MC)

Own price elasticity of demand measures the

change in quantity demanded over change in price

change in demand over time

percentage change in quantity demanded of the good over percentage change in price of the same good

average change in quantity demanded over time

average percentage change in price over average percentage change in quantity demanded

The following information is available for a company that operates in a perfectly competitive market.

Current output5000 unitsCurrent market price$5Total cost$25,000Marginal cost$6Total variable cost$20,000

What is the best action for this firm?Increase output in the short run and exit the market the long run

Increase output in the short run and stay in the market in the long run

Reduce output in the short run and exit in the long run

Reduce output in the short run and stay in the market in the long run

Shut down in the short run and produce in the long run

Question 36(Multiple Choice Worth 1 points)

(04.03 MC)

What will happen to the deadweight loss if a monopolist switches from zero price discrimination to perfect price discrimination?

It will increase.

It will decrease.

It will be eliminated.

It is unchanged.

Indeterminate

Question 38(Multiple Choice Worth 1 points)

(02.05 MC)

The income elasticity of demand for a good is 4 and average consumer income goes down by 10%. The good's quantity demanded

is indeterminant

must have increased by 40% and it is a normal good

must have increased by 40% and it is an inferior good

must have decreased by 2.5% and the good is inferior

must have decreased by 0.4% and it is a normal good

Question 39(Multiple Choice Worth 1 points)

(03.02 MC)

In the short run, a firm's total cost is $150 if it does not produce any units of output. Its variable cost is $5 per unit. If the firm produces 5 units, variable costs are ________, while total costs are ________.

$5; $50

$5; $70

$10

$25; $175

$25; $775

Question 40(Multiple Choice Worth 1 points)

(03.06 HC)

A price-taking firm evaluates its production costs and revenue and decides it will operate in the short run and can stay in the market in the long run without conditions changing. Which of the following must describe the firm's short-run production?

Average variable cost > Price < Average total cost

Average variable cost = Price = Average total cost

Average variable cost < Price < Average total cost

Price Average total cost

Price > Average total cost

Question 41(Multiple Choice Worth 1 points)

(01.04 MC)

If a country, individual, or business can produce one unit of output using the fewest resources relative to all other producers of the same output, then it must have ________ in that good.

an absolute advantage

superior human capital

a comparative advantage

achieved allocative efficiency

achieved productive efficiency

Question 42(Multiple Choice Worth 1 points)

(06.03 MC)

Private investors complain that the "free rider problem" makes investment in public goods and services inefficient and less profitable. Which of the following statements explains why?

Public goods are rivalrous.

Public goods are excludable.

Public goods are non-rivalrous.

Public goods are non-affordable.

Public goods are non-excludable.