Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her average total cost?
A) $6.67
B) $10.00
C) $11.00
D) $13.33
B
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In the table above, the marginal product of the third unit of labor is ________ units of output
A) 3 B) 4 C) 12 D) 16
To keep employees from shirking, invest in greater monitoring
a. if monitoring is inexpensive relative to its benefits b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives solve both moral hazard and adverse selection problems with employees
During periods of recession unemployment:
A. is more common. B. is less common. C. is uncorrelated to periods of recession. D. rates are the same for all groups of the working population.
If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $10, the firm:
A. can make positive profits by producing where MC = MR. B. cannot make positive profits and should shut down in the short run. C. can make positive profits by producing more than 43 units. D. should continue to operate in the short run, but plan to exit in the long run.