The Package Store hires workers to wrap packages. The store sells this service for $5. The marginal revenue product of this store's fifth worker is $50. The marginal product of the fifth worker is
A. 0.01 package.
B. 1 package.
C. 10 packages.
D. indeterminate from this information.
Answer: C
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The quantity of newspapers sold will decline if
A. newsprint becomes more expensive. B. the printers’ union makes wage concessions. C. prices are reduced. D. magazine prices rise.
If a supply curve is a horizontal line, supply is said to be
A) unit elastic. B) inelastic. C) perfectly elastic. D) perfectly inelastic.
Transfer prices should be set to so
A) to maximize profits for only one unit in a multi-unit firm. B) allow arbitrage with the external market place. C) to maximize profits for the overall firm. D) none of these choices.
The velocity of circulation is the
a. speed at which the multiplier takes effect. b. speed at which money circulates. c. speed at which tax cuts get spent. d. rate at which money creation takes place.