If a decision maker uses marginal analysis, then the relevant costs are the
a. full costs of a particular activity or product.
b. fixed costs which do not vary with the extra activity or output.
c. profits obtained on the activity or product.
d. average costs for a particular activity or product.
e. additional costs of a particular activity or product.
E
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A government policy that would raise the rate of productivity growth is
A) shifting infrastructure expenditures to the private sector. B) taxing expenditures on research and development. C) reducing the government budget surplus. D) improving human capital development.
Which of the following is NOT an accurate description of open market operations prior to 2008?
A) It was used to affect the market for bank reserves. B) It was used to control the federal funds rate. C) It involved buying and selling of short-term Treasury securities. D) It involved buying and selling long-term securities.
As new firms enter a competitive price-searcher market, it can be expected that
a. market price will increase. b. the output of existing firms will increase. c. profits of existing firms will increase. d. market demand should decrease. e. profits of existing firms will decrease
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 40 units of labor, what is marginal cost at this level of output?
A. $55 B. $70 C. $60 D. $35 E. $280