What is the MRTS for a firm with the following production function , q = 200L0.5K0.5 with L = 4 and K = 16?
A) MRTS = -4
B) MRTS = -2
C) MRTS = -1
D) MRTS = -8
A
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For a monopolist, marginal revenue for all units greater than 1 is:
A. always equal to price. B. never less than price. C. always less than price. D. minimized at price.
If the Fed buys securities on the open market, this will
a. decrease banks’ excess reserves. b. increase banks’ excess reserves. c. leave banks’ excess reserves unchanged. d. lower the reserve requirement.
Which of the following best describes the "education premium"?
A. The added pay for getting a higher level of education B. The added cost of getting a higher level of education C. The added benefits for society as a whole from a person getting a higher level of education D. The increase in average wages, in inflation-adjusted dollars, over time
Suppose a town can earn an additional $10,000 per year in revenue if it installs a red-light camera at its busiest intersection. At what additional cost would installing this camera not be considered economically rational?
What will be an ideal response?