Author Question: Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank ... (Read 110 times)

Jramos095 · **on:** Jun 29, 2018

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

A) an increase in the supply of prerecorded DVDs.
B) a decrease in the supply of prerecorded DVDs.
C) an increase in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.
D) a decrease in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.

Question 2

Given that the market wage rate is 50 and both the labor and the goods market are perfectly competitive, a profit-maximizing firm should hire an additional worker if:

A) the marginal product of the worker is 50 units.
B) the value of marginal product of the worker is at least 50.
C) the marginal product of the worker is less than 50 units.
D) the value of marginal product of the worker is less than 50.