Refer to Scenario 2. Diminishing marginal returns starts to occur between units:
A) 2 and 3.
B) 3 and 4.
C) 4 and 5.
D) 5 and 6.
C
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Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?
What will be an ideal response?
Depreciation allowance ________ the profit subject to taxation, which ________ the amount of tax the firm pays.
A) decreases; decreases B) increases; increases C) increases; decreases D) decreases; increases
Given the scenario described, if the market price of hammers increased from $8 to $14, total producer surplus would:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. increase from $8 to $14. B. increase from $1 to $12. C. decrease from $14 to $8. D. increase from $7 to $30.
Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, consumer surplus is:
A. $32.
B. $11.
C. $7.
D. equal to the producer surplus.