A firm's demand curve for labor coincides with the:
a. marginal cost curve.
b. average cost curve.
c. marginal revenue curve.
d. marginal revenue product curve.
QUESTION 2Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that:
a. consumers are boycotting local retailers.
b. Wal-Mart engages in illegal acts of monopolization.
c. there are diseconomies of scale in retail sales.
d. there are economies of scale in retail sales.
e. Wal-Mart is managed by ruthless business people.
QUESTION 3Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker would increase apple yields by 20 bushels per day. The price of apples is 15 per bushel. The owner should hire the extra worker if the wage rate is no greater than:
a. 50 per day.
b. 150 per day.
c. 200 per day.
d. 300 per day.
QUESTION 5Economies of scale can be caused by all of the following except:
a. price discounts for large scale purchases.
b. labor specialization.
c. use of more productive equipment.
d. increases in the firm's average total cost.
e. more cost-efficient methods of marketing.
QUESTION 6The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is 5 per wash, and the price of workers is 60 per day. The car wash should hire a fifth worker if it would increase total production to at least:
a. 92 cars per day.
b. 100 cars per day.
c. 104 cars per day.
d. 110 cars per day.
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