Author Question: If the wage is below the marginal revenue product, then a profit-maximizing firm will a. employ ... (Read 27 times)

roselinechinyere27m · **on:** Jun 30, 2018

If the wage is below the marginal revenue product, then a profit-maximizing firm will
a. employ more workers
b. employ fewer workers
c. see an increase in its demand for labor
d. see an increase in its supply of labor
e. see a fall in its demand for labor

Question 2

When consuming a good creates positive externalities,
a. private demand increases
b. private demand decreases
c. the private demand curve overstates the marginal social benefit of the good
d. the private demand curve understates the marginal social benefit of the good
e. the equilibrium quantity increases without government intervention