Cigarettes Should Be Valued in GDP at R₁7

question 19

True/False

Cigarettes should be valued in GDP at r₁7.50 per pack, even though r₁5.00 of that price is tax, because the buyers paid r₁7.50 per pack.

Describe how shifts in marginal cost and marginal revenue product curves affect firm behavior in both product and labor markets.

Understand the law of diminishing marginal returns and its implications for the marginal revenue product schedule.

Evaluate how changes in technology and labor supply affect the marginal revenue product of labor and the firm's hiring decisions.

Apply concepts of perfect competition in the context of the labor market to analyze firm behavior.