The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The marginal cost of the 4th employee is:
A. $11,000.
B. $9,500.
C. $10,750.
D. $13,000.
Answer: A
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What will be an ideal response?
Conrad and Meyer (1958) counter Fogel and Engerman's (1974) claim that slave breeding was a myth by arguing that any profit-maximizing slave owner would consider slave breeding as long as:
(a) The expected rate of return from slave sales fell below the costs of rearing the slave to the age of sale. (b) Slavery was an irrational institution. (c) The expected rate of return from slave sales exceeded the costs of rearing the slave to the age of sale. (d) Slavery was an immoral institution.
Refer to the following graph.
In New York City, the rent on many apartments is set below market rates. As a result, many people find that the only way to obtain an apartment is to make illegal payments to landlords. If Pc is the controlled rent, a best estimate of such "key" money is shown as:
A. Pf. B. Pf minus Pc. C. Pe. D. Pe minus Pc.
?A perfectly competitive firm that earns an economic profit in the short run choose the output that:
a. ?maximizes the difference between total revenue and implicit cost. b. ?minimizes its total cost. c. ?maximizes the difference between total revenue and total cost. d. ?maximizes its total revenue. e. ?maximizes the difference between total revenue and explicit cost.