In 2011, the Top 20% of US Families Had More

question 40

Short Answer

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

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.

Explain how a firm's marginal cost curve relates to its decision-making in perfectly competitive product and labor markets.

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Definitions:

Noncash Assets

Assets that cannot be easily converted into cash, such as machinery, buildings, and inventory.

Capital Balances

The amount of money contributed to a company by its owners or shareholders plus retained earnings.

Liquidation

The process of winding up a company's operations, selling off its assets to pay creditors and distributing any remaining assets to its shareholders.

Partnership

A lawfully organized business effort where partners distribute management tasks and the earnings.