-Refer to Table 7

question 130

Multiple Choice

-Refer to Table 7.2 to answer this question.Assume that technology and the price of inputs remain unchanged.If the firm builds a bigger plant and all of its inputs exactly double,what will be its output at economic capacity in the new plant under conditions of constant returns to scale?

• A)Exactly 800.
• B)Exactly 1,000.
• C)More than 500 but less than 1,000.
• D)More than 1,000.

Identify the conditions under which a firm maximizes profit in labor and product markets.

Analyze trends in long-run real wages in the United States.

Calculate changes in real wages based on nominal wage changes and inflation rates.

Describe the concept of Marginal Revenue Product (MRP) of labor and its significance.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Cash Dividend

A payout from a company's profits, determined by the board of directors, given to a group of its stockholders as cash.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

Board of Directors

A group of individuals elected to represent shareholders and govern the corporation's affairs, making key decisions on its behalf.