The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, the marginal cost of producing the fourth gallon of ice cream is
A) $2.
B) $3.
C) $5.
D) $8.
E) $32.
B
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Consider two economies: Barylia and Lithasia. The GDP per capita in Lithasia is $6,000 while the GDP per capita in Barylia is $12,000. Both countries grow exponentially at an annual rate of 10%
How will their GDPs vary over the next year? Is there any limitation of comparing the absolute levels of GDP per capita of both countries over the next years? If yes, what is a plausible solution?
With barriers to the entry of new firms
A) a cartel is guaranteed to earn an economic profit greater than zero. B) a cartel's members have no incentive to cheat. C) the cartel will likely earn an economic profit greater than zero. D) industry supply will expand if the firms form a cartel.
A firm is making a long-run planning decision. It wants to decide on the optimal size of plant and labor force. It is considering building a medium-sized plant and hiring 100 workers
Engineering estimates suggest that at those levels, the marginal product of capital will be 100 and the marginal product of labor will be 75. If the wage rate is $5 and the rental rate on capital is $10, is the firm making the right decision? Support your answer.
Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle
A) increase; decrease B) decrease; increase C) decrease; decrease further D) increase; increase further