Above is a firm's average product of labor and marginal product of labor curves. The price of labor is $60 per unit.When the firm uses 4 units of labor, what is AVERAGE variable cost?
A. $124
B. $10
C. $240
D. $24
E. none of the above
Answer: B
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If one person has all the income and everyone else has none, the Gini ratio is zero
Indicate whether the statement is true or false
Policy that tries to influence target variables by changing the tax rates is called
A) fiscal policy. B) tax rate policy. C) recession policy. D) monetary policy.
Albro Martin (1971) argues that the Interstate Commerce Commission (1887–1995) was
(a) never a case of "capture." (b) "captured" by the railroads themselves. (c) "captured" by the customers of the railroads. (d) too ineffective to warrant "capture" by anyone.
Suppose that when a perfectly competitive firm produces 500 units of output a day, it earns an economic loss. If the price of each unit of output is $1.50, then, in the short run, it's clear that this firm:
A. should shut down. B. is not maximizing its profit. C. should produce more than 500 units a day. D. should not shut down if its total variable cost is less than $750.