Refer to the graph shown.
If labor supply shifts from S1 to S2, the firm will:
A. raise employment from q1 to q0 to maximize profit where MRP = W.
B. reduce employment from q0 to q1 to maximize profit where MRP = W.
C. raise employment from q2 to q1 to maximize profit where MRP = W.
D. reduce employment from q1 to q2 to maximize profit where MRP = W.
Answer: D
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The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. The marginal private cost when output equals 2 tons of paper per week equals
A) $50 per ton B) $100 per ton. C) $150 per ton. D) None of the above answers is correct.
The minimum short-run average total cost for Tony's Barbecue equals $8.50 at an output level of 100 meals per day. The market price of each meal is $8 . In short-run equilibrium, Tony
a. will suffer an economic loss of $50 per day, serving 100 meals per day b. cannot avoid an economic loss and should produce where the difference between average total cost and the price is minimized c. cannot avoid an economic loss and should serve no meals per day d. will suffer an economic loss greater than $50 per day, serving more than 100 meals per day e. will suffer an economic loss greater than $50 per day, serving less than 100 meals per day
Rapid economic growth has increased the economic well-being of U.S. citizens because
a. people are now earning higher incomes while goods and services are cheaper b. the dollar is worth now more than in the past c. the output of goods and services has risen faster than the population d. the population is now living and working longer e. the population has increased while production has decreased
Tax revenues can be found by
A) multiplying the tax base by the (average) tax rate. B) dividing the tax base by the (average) tax rate. C) summing the tax base and the (average) tax rate. D) multiplying taxable income by the marginal tax rate.