Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Krystal's marginal benefit of staying open per hour is $30
If she is following the marginal principle, how many hours should Krystal stay open?
A) 4 hours B) 5 hours C) 6 hours D) 7 hours
B
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Which of the following statements is FALSE?
A) A perfectly inelastic supply curve is a vertical line. B) Time is an important consideration in determining supply elasticity. C) Price elasticity of supply can never equal 1. D) A horizontal supply curve is possible.
When the actual inflation rate rises more rapidly than nominal wage rates, we would expect the short-run aggregate supply curve to shift to the right
a. True b. False Indicate whether the statement is true or false
Data indicate that the large increase in government spending on income transfers that started with the War on Poverty during the latter half of the 1960s has resulted in
a. a substantial reduction in the poverty rate. b. a more equal distribution of income. c. fewer single-parent families because a married couple receives benefits twice as large. d. little change in the official poverty rate.
When the current price of a good is below the equilibrium price:
A. sellers will notice their inventories are growing. B. the price will tend to stay below the equilibrium price. C. buyers have an incentive to offer to pay sellers more than the current price. D. there will be excess supply.