The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure when it hires 100 coal miners?
A. $35,000
B. $20,000
C. $10,000
D. $30,000
D. $30,000
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If a firm is earning just enough to cover all its economic profits does that mean it's not making a profit?
What will be an ideal response?
The Profit & Loss Statement lists:
a. Assets and Expenses b. Assets and Liabilities c. Net Income and Owner's Equity d. Income and Expenses
If individuals are rational, they should choose actions that yield the:
A. largest economic surplus. B. smallest economic surplus. C. smallest total costs. D. largest total benefits.
Exhibit 11-6 Aggregate demand and supply model
In Exhibit 11-6, if the aggregate demand curve is at AD1, the government should:
A. raise taxes to move to AD2. B. cut taxes to move to AD2. C. cut taxes to move to AD3. D. cut spending to move to AD2.