FratFiles

• Save Paper

1. In a competitive industry, suppose the marginal revenue product (MRP) of the last doughnut baker hired is $35, the MRP of the last bagel baker hired is $15, and a bakery must pay doughnut bakers $40 a day and bagel bakers $10 per day. To maximize profits the bakery should hire:
A) more doughnut bakers and less bagel bakers.
B) less doughnut bakers and more bagel bakers.
C) less of both doughnut bakers and bagel bakers.
D) more of both doughnut bakers and bagel bakers.

Answer: B

2. If two inputs are complementary an increase in the price of one input will:
A) decrease the demand for the other input.
B) increase the demand for the other input.
C) increase the quantity demanded for the other input.
D) have no effect on the demand for the other input.
Answer: A

3. If the marginal revenue product (MRP) of labor is less than the wage rate:
A) the firm is making profits. C) more labor should be employed.
B) the firm is incurring losses.......

View the rest of this paper...

Approximate Word Count: 1919
Approximate Pages: 8 (250 words per double-spaced page)

Similar Essays

1. 9422 Plus Answes
   

   9422 Plus Answes 1. In a competitive industry, suppose the marginal revenue product (MRP) of the last doughnut baker hired is $35, the MRP of the last bagel baker hired is $15,

2. 
   

3. 
   

4. 
   

5.