Question

26) Which of the following is the set of conditions necessary for long erun equilibrium for a competitive firm? A) P-SRMC SRAC LRAC C) P SRMC<SRAC LRAC B) P SRMC- SRAC-LRAC D) P- SRMC- SRAC-LRAC 2 27) The marginal revenue product of labor is A) the marginal product of capital times the price of labor. B) the additional revenue the firm makes by selling one unit of labor. C) the additional revenue a firm earns by employing D) the additional profit a firm earms by employing one additional unit of one additional unit of labor. labor. 25)- 28) Part of a perfectly y competitive firm'scost curve is the main part of the firm's short run firms curve A) average fixed, demand C) marginal; supply B) average variable; demand D) average total; supply 29) )is a change that makes some people better off and nobody worse off. A) A government transfer program such as Social Security B) Voluntary exchange C) A reduction in interest rates D) A price floor that increases income to suppliers 30) Total revenue increases if price and demand is A) falls; inelastic C) rises; inelastic B) falls; unit elastic D) rises; elastic Refer to the information provided in Figure 9.1 belote to answer the questions that follow. Cost and demand conditions MC MR 15 13- 0 3 69 12 16 17 9 Bushels of wheat Figure 9.1 31) Refer to Figure 9.1. This farmer's shutdown point is at a price of A) s0. B) $4. C) $7 D) $10. 32) Because marginal revenue product reflects productivity, increases in productivity directly shift 32) A) input supply curves to the right. C) input supply curves to the left B) input demand curves to the left. D) input demand curves to the right. C-6