Author Question: If the marginal factor cost is greater than the marginal revenue product of a resource, the producer ... (Read 58 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If a 50 percent increase in the price of pizza results in a 25 percent decrease in the quantity demanded of pizza, then the price elasticity of demand for pizza:
 a. is equal to 0.5 and demand for pizza is inelastic.
  b. is equal to 0.5 and demand for pizza is elastic.
  c. is equal to 2 and demand for pizza is elastic.
  d. is equal to 2 and demand for pizza is inelastic.
  e. cannot be determined from the information provided.



BUTTHOL369

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

True

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

For a complete list of videos, visit our video library