Micro_StudyQuestions_for_Final

A firm will maximize its profits by hiring factors up

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10. A firm will maximize its profits by hiring factors up to the point at which: a. MR = MC, if the firm is a monopolist, monopolistic competitor, or oligopolist. b. P = MC, if the firm is a perfect competitor. c. MR = MFC, if the firm is a product price taker. d. VMP = MFC, if the firm is a product price searcher. e. a and b 11. If MRP > MFC, then the firm: 12. Which of the following will cause a firm's factor demand curve to shift to the right? 13. The firm minimizes costs by purchasing factors such that: 14. If the MPP of the last unit of labor hired equals 16 and the MPP of the last unit of capital hired equals 8, and the price of labor is $4 per unit and the price of capital is $4 per unit, then: a. the firm is minimizing its costs with this combination of factors b. the firm is minimizing its profits with this combination of factors c. the firm should hire more labor and less capital in order to minimize its costs. d. the firm should hire more capital and less labor in order to minimize its costs. e. a and b 15. The market demand curve for labor: 16. The elasticity of demand for labor measures:
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