Demonstrate that when the firm maximizes profits with respect to labor, the choice variable, the supply...
Demonstrate that when the firm maximizes profits with respect to labor, the choice variable, the supply curve is positively sloped.
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Demonstrate that when the firm maximizes profits with respect to
labor, the choice variable, the supply...
When the firm maximizes its profits, what condition is satisfied? Explain in words, why the profits...
When the firm maximizes its profits, what condition is satisfied? Explain in words, why the profits would not be maximized if the equality (=) in the condition were replaced with a greater than (>) or smaller than (<).
1) In Cournot equilibrium each firm chooses the quantity that maximizes its own profits assuming that...
1) In Cournot equilibrium each firm chooses the quantity that maximizes its own profits assuming that the firm’s rival will continue to sell at the same price as before.In Cournot equilibrium each firm chooses the quantity that maximizes its own profits assuming that the firm’s rival will continue to sell at the same price as before. Q: Why it is false? 2) Suppose that the demand curve for an industry’s output is a downward-sloping straight line and there is constant...
If the labor supply curve is given by w= 2 + 5L +.05L demonstrate that the...
If the labor supply curve is given by w= 2 + 5L +.05L demonstrate that the marginal expense of labor is always above labor supply.
QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product maximizes pro...
QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product maximizes profit minimizes average total cost minimizes average variable cost QUESTION 32 If marginal cost is rising average variable cost must be falling average fixed cost must be rising marginal product must be falling marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output is produced marginal cost is upward sloping...
Which of the following is NOT a reason that a firm that maximizes profits may fail...
Which of the following is NOT a reason that a firm that maximizes profits may fail to maximize shareholder wealth inguneices sock pice may be soienal O B. Shareholder wealth depends on cash flow which is not the same as profit. ° C. The timing of profits matters. Shareholders might prefer lower profits that arrive sooner. O D. Risk matters. Shareholders are risk averse, so they prefer less risky investments that generate lower profits
when the 3) A dominating substitution effect will result in wage rate increases. A) A positively...
when the 3) A dominating substitution effect will result in wage rate increases. A) A positively sloped labor supply (The hours of work desired increases with the wage rate) B) A positively sloped labor demand (The hours of work desired increases with the wage rate) C) A negatively sloped labor supply (The hours of work desired increases with the wage rate) D) A negatively sloped labor supply (The hours of work desired decreases with the wage rate)
QUESTION 34 The efficient scale of the firm is the quantity of output that o maximizes...
QUESTION 34 The efficient scale of the firm is the quantity of output that o maximizes marginal product maximizes profit minimizes average total cost O minimizes average variable cost am QUESTION 35 The average fixed cost curve o always declines with increased levels of output O always rises with increased levels of output is flat with respect to output declines as long as marginal cost is going down
The individual supply curve is positively sloped because a higher price A. ensures that a firm...
The individual supply curve is positively sloped because a higher price A. ensures that a firm will make more profit by purchasing more materials and hiring more workers O B. will discourage consumers from buying so more will be supplied O C. encourages a firm to increase its output by purchasing more materials and hiring more workers O D. will not last long so that the firm has to increase production while it can.
a. In our model explaining the consumer's supply of labor, what determines the slope of the...
a. In our model explaining the consumer's supply of labor, what determines the slope of the consumer's budget line? the values at which the budget line meets the horizontal and vertical axes? the sign of the slope of the consumer's labor supply curve? b. Is it possible for the labor supply curve to be negatively sloped? Why or why not?
Which of the following is true with respect to a perfectly competitive firm? It will make...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
If the labor supply curve is given by w= 2 + 5L +.05L demonstrate that the marginal expense of labor is always above labor supply.
QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product maximizes profit minimizes average total cost minimizes average variable cost QUESTION 32 If marginal cost is rising average variable cost must be falling average fixed cost must be rising marginal product must be falling marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output is produced marginal cost is upward sloping...
Which of the following is NOT a reason that a firm that maximizes profits may fail to maximize shareholder wealth inguneices sock pice may be soienal O B. Shareholder wealth depends on cash flow which is not the same as profit. ° C. The timing of profits matters. Shareholders might prefer lower profits that arrive sooner. O D. Risk matters. Shareholders are risk averse, so they prefer less risky investments that generate lower profits
when the 3) A dominating substitution effect will result in wage rate increases. A) A positively sloped labor supply (The hours of work desired increases with the wage rate) B) A positively sloped labor demand (The hours of work desired increases with the wage rate) C) A negatively sloped labor supply (The hours of work desired increases with the wage rate) D) A negatively sloped labor supply (The hours of work desired decreases with the wage rate)
QUESTION 34 The efficient scale of the firm is the quantity of output that o maximizes marginal product maximizes profit minimizes average total cost O minimizes average variable cost am QUESTION 35 The average fixed cost curve o always declines with increased levels of output O always rises with increased levels of output is flat with respect to output declines as long as marginal cost is going down
The individual supply curve is positively sloped because a higher price A. ensures that a firm will make more profit by purchasing more materials and hiring more workers O B. will discourage consumers from buying so more will be supplied O C. encourages a firm to increase its output by purchasing more materials and hiring more workers O D. will not last long so that the firm has to increase production while it can.
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
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