Entrepreneurs:often form small companies called startups.Fast-second strategies are more likely to be used by:dominant firms than by startup firms.The commercial success of a new product depends on:both its price and its marginal utility.Refer to the above data. At $20 million of R&D expenditures, the:marginal benefit of R&D exceeds the marginal cost.The conjecture that R&D expenditures as a percentage of firms' sales first rise, reach a peak, and then fall as industry concentration rises is known as the:inverted-U theory.Suppose that Book-Cost Busters (BCB), without authorization, reproduced a best-selling novel and placed itfor downloading on the BCB pay-for-use website. This action would violate the publisher's:copyright.The output effect occurs:because a change in the price of a resource will alter costs and therefore the equilibrium output.The demand curve for labor would shift leftward as the result of:a decrease in the productivity of labor.Resource pricing is important because:of all of these reasons.
Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demandedincreasedby 10 percent. We can conclude that:the labor demand curve must have independently shifted to the right.Marginal revenue product measures the:amount by which the extra production of one more worker increases a firm's total revenue.In the market for superstars:small differences in talent get magnified into huge differences in pay.When economists say that the demand for labor is a derived demand, they mean that it is:related to the demand for the product or service labor is producing.Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:multiplying marginal product by product price.If a firm is selling in an imperfectly competitive product market, then:the marginal products of successive workers must be sold at lower prices.The purely competitive employer of resource A will maximize the profits from A by equating the:price of Awith the MRP of A.The demand for labor is derived from:consumer demand for the product or service it is helping to produce.We say that the demand for labor is a derived demand because:we demand the product that labor helps produce rather than labor service per se.Refer to the above data. If the prices of labor and capital are $9 and $15 respectively, the firm's total revenue will be:$192.A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when:MRPx/Px equals MRPy/Py equals MRPz/Pz equals 1.Refer to the above graph. Other things equal, a decrease in the price of a substitute resource would cause a(n):shift fromD2toD3assuming the output effect exceeds the substitution effect.