Refer to Scenario 16.2 below to answer the question(s) that follow. SCENARIO 16.2: The marginal benefit for a particular food is described by MB = 60 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 3q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 5q.Refer to Scenario 16.2. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $50
B. 0 units of food; $0
C. 10 units of food; $20
D. 15 units of food; $45
Answer: D
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The marginal revenue product curve is:
a. c and d are correct. b. c and e are correct. c. given by the marginal product curve multiplied by the price of the good. d. the marginal contribution of an additional worker to firm's revenues. e. the change in total cost that results from employing an additional worker.
A firm's marginal revenue product of labor curve is: a. a horizontal straight line at the market wage rate
b. equivalent to its demand for labor curve. c. a vertical line at the market price of the good it produces. d. equivalent to its supply of labor curve.
A distinguishing feature of a public good is that it:
A. is not possible to exclude people who don't pay for the public good. B. is possible to exclude people who pay for the public good. C. may have external costs. D. is provided by the government.
The Phillips curve shows that when the unemployment rate is lower than the natural rate,
A) inflation is higher than expected. B) inflation is lower than expected. C) policy rate is higher than expected. D) policy rate is lower than expected.