Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 2 workers, the total cost of production is $100 . When the firm hires 3 workers, the total cost of production is $120 . In addition, assume that the variable cost per unit of labor is the same
regardless of the number of units of labor that are hired. What is the firm's fixed cost?
a. $40
b. $60
c. $80
d. $100
b
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If the demand curve fails to capture all of the benefits of consumption, then the:
A. the equilibrium price will be inefficiently high. B. the equilibrium price will be inefficiently low. C. equilibrium price will be efficient but the equilibrium quantity will be inefficiently large. D. government needs to impose regulations that require more consumption.
The economy entered a recession in January of 2015, but GDP data alluding to the start of the recession was not published and analyzed by the Fed until July 2015. This exemplifies a(n)
A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
The only way to eliminate all competition from social life would be through
A) abolishing money. B) eliminating all scarcity. C) eliminating all selfishness. D) giving government the power to control everything. E) making everyone as concerned about others as they are about themselves.
Refer to the figure below. If the original curves are MB1 and MC1, rational consumers will gather ________ units of information.
A. 4 B. 9 C. 6 D. 5