Tova is trying to get a bakery to hire her. She said that if she helped out, the shop could sell an additional 5 cakes per day. If each cake sells for $10 and the owner hires her, then
a. the wage rate must be at least $51 per day.
b. Tova's marginal revenue product must be less than the wage rate.
c. Tova's marginal revenue product must be positive.
d. the wage rate must be at most $50 per day.
e. the wage rate must be equal to $40 per day.
D
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A steelmaking plant pollutes the air and water so __________
A. the marginal social cost of producing steel exceeds the marginal private cost by the amount of the marginal external cost B. the marginal social cost of producing steel is less than the marginal private cost by the amount of the marginal external cost C. the marginal private cost of producing steel equals the marginal ex-ternal cost plus the marginal social cost D. the marginal private cost of producing steel minus the marginal social cost equals the marginal external cost
Suppose investors become more optimistic that the economy will be doing well over the next decade. How will the market for loanable funds as depicted in the accompanying graph be affected?
A. Supply will shift to the right from S1 to S2.
B. Supply will shift to the left from S2 to S1.
C. Demand will shift to the right from D1 to D2.
D. Demand will shift to the left from D2 to D1.
Industries, where economies of scale dictate that only a few firms produce, will be efficient if the markets in which they sell are
A. perfect. B. contestable. C. close to each other. D. protected from entry.