A proprietorship is a firm with
A) two or more owners who both have unlimited liability.
B) a single owner who has limited liability.
C) a single owner who has unlimited liability.
D) many owner all of whom have limited liability.
Ques. 2The value of marginal product of labor is the change in
A) profit from hiring one more worker.
B) output from hiring one more worker.
C) total revenue from hiring one more worker.
D) profit from producing one more unit of output.
Ques. 3In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to 4. The total deadweight loss would be
A) 0.
B) 10.
C) 15.
D) 20.
Ques. 4Based on the following pieces of information, which fast food product do consumers see as the closest substitute for Wendy's Hamburgers?
A) Kentucky Fried Chicken, which has a cross elasticity of 1.70 with Wendy's
B) McDonald's hamburgers, which have a cross elasticity of 1.01 with Wendy's
C) Pizza Hut pizza, which has a cross elasticity of zero with Wendy's
D) Taco Bell tacos, which have a cross elasticity of -1.25 with Wendy's
Ques. 5In the above table, what is marginal product of labor for the 2nd worker?
A) 20
B) 8
C) 10
D) 12
Ques. 6For a monopoly, at the level of output where marginal revenue equals zero, then the
A) firm earns no revenue.
B) price elasticity of demand at this amount of output is zero.
C) firm has maximized total revenue.
D) firm is a price taker.
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