In the above graph, when disposable income is 1,000, saving is

The largest component of spending in GDP is

A) government spending. B) net export spending. C) investment spending. D) consumption spending.

A monopolistically competitive firm in long-run equilibrium:

A) will make negative profit. B) will make zero profit. C) will make positive profit. D) Any of the above are possible.

Marginal revenue product of labor equals marginal product times the wage only when the firm is a perfect competitor in the product market

a. True b. False

Suppose the marginal physical product of labor at a shoe string factory is 1,500 shoestrings per hour at 80 hours, 1,200 per hour shoestrings at 90 hours, 800 shoestrings per at 100 hours, and 300 shoestrings per hour at 110 hours. If a shoestring maker’s wages are $60 per hour and each string sells for $0.05. What is the optimal use of labor for making shoestrings?

A. 80 hours B. 90 hours C. 100 hours D. 110 hours