question
An author who writes newspaper columns for $75 each is deciding whether to purchase a personal computer with a laser printer. She figures she'd be able to write two more columns per month than she could on her typewriter. She should
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buy the computer if the monthly payment is less than $150
question
An increase in the price of a resource will cause a movement along the demand curve for that resource.
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True
question
A resource that earns only economic rent
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cannot be employed in any other line of production, so its opportunity cost is zero
question
10 widgets
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In Exhibit 11-11, the widgets are sold in a perfectly competitive market at $10 each. The marginal product of the 3rd pound of rubber is:
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If a firm is experiencing diminishing marginal returns,
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additional increments of output diminish as one variable resource is increased, other things constant
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second
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In Exhibit 11-6, diminishing returns first becomes evident with the addition of the _____ machine.
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Marginal revenue product is measured in dollars per unit of output.
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False
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A resource price taker's resource demand curve is
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the same as its marginal revenue product curve
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Firms that face downward-sloping demand curves for their output are called
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price searchers
question
If ten cases of spring water are sold at a price of $6 each in a perfectly competitive output market and the marginal product of the last unit of labor is 5, then the marginal revenue product of that last unit of labor is
answer
$30
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