Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declines from $30 per unit to $29 per unit, marginal revenue for the eleventh unit is:
a. $9.
b. $19.
c. $1.
d. $29.
b. $19.
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What is the difference between a recessionary gap and an inflationary gap?
What will be an ideal response?
The fact that the production function relating output to capital becomes flatter as we move from left to right means that
A) the marginal product of labor is positive. B) the marginal product of capital is positive. C) there is diminishing marginal productivity of labor. D) there is diminishing marginal productivity of capital.
If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would
a. increase the surplus of labor. b. reduce the surplus of labor. c. increase the shortage of labor. d. reduce the shortage of labor,
Refer to the graph shown. As a result of the shift from D1 to D2, the value of the dollar will:
A. increase in response to excess demand equal to Q3 - Q1. B. increase in response to excess demand equal to Q4 - Q2. C. decrease in response to excess supply equal to Q4 - Q2. D. decrease in response to excess supply equal to Q3 - Q1.