In the above table, the marginal cost of the fourth unit is
A. $6.00.
B. $1.00.
C. $24.00.
D. $2.00.
Answer: B
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Refer to Figure 22.5 below. Suppose that the initial budget constraint AB is given by the equation G = 150 - c/5, where G is the units of public good and c is consumption. A closed- ended matching grant up to 100 units of public good is proposed. If the slope of line segment AD is -2, write the equation of the new budget constraint after a closed-ended matching grant.
Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to
a. shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged.
b. shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4.
c. shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4.
d. shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.
Which of the following does NOT follow from the theory of efficient markets
A. no one consistently outperforms the market B. short-run stock price changes are unpredictable C. careful stock research will increase investment returns D. stock prices incorporate all available information
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.