The above table shows the short-run total product schedule for the campus book store. What is the marginal product (MP) of going from 5 to 6 employees at the book store?
A) 83 books sold
B) 13.83 books sold
C) 10 books sold
D) between 11 and 14 books sold
Ques. 2In the above figure, a negative relationship is demonstrated in which of the graphs?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
Ques. 3Which of the following statements is CORRECT?
A) When demand increases, both the price and the quantity increase.
B) When demand decreases, the price rises and the quantity decreases.
C) When supply increases, the quantity decreases and the price rises.
D) When supply decreases, both the price and the quantity decrease.
Ques. 4Game theory is used to explain firms' decisions in
A) a monopoly.
B) an oligopoly.
C) a perfectly competitive market.
D) a monopolistically competitive market.
Ques. 5Which of the following is NOT a solution to a principal-agent problem?
A) ownership
B) managerial hierarchy
C) incentive pay
D) long-term contracts
Ques. 6The demand for factor is driven by the demand for goods and services produced by that factor of production. This phenomenon is referred to as
A) elastic demand.
B) joint demand.
C) inverse demand.
D) derived demand.
Ques. 7Which of the following is NOT true of firms in monopolistic competition?
A) They are price takers.
B) They practice product differentiation.
C) They have excess capacity in the long run.
D) They earn a normal profit in the long run.
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