Exhibit 11-2 Labor and output data
Labor
Output
0
0
1
20
2
45
3
80
4
100
5
110
In Exhibit 11-2, if product price is fixed at $5, the MRP of the third worker is equal to:
A. $35.
B. $125.
C. $80.
D. $175.
Answer: D
You might also like to view...
Crowding in occurs when government spending improves business expectations about the future and leads to higher business investment spending
a. True b. False Indicate whether the statement is true or false
The line segment ST describes the region where
A. increases in output do not cause higher prices because of a large portion of unemployed resources.
B. prices and output increase together.
C. increases in prices do not generate any increase in output.
D. increases in prices cause decreases in output.
Economic profit accounts for both implicit and explicit costs.
Answer the following statement true (T) or false (F)
If a price-discriminating monopolist sells the same product in two markets but charges a higher price in market X and a lower price in market Y, the pricing difference indicates that demand is:
A. More elastic in market X than market Y B. Less elastic in market X than market Y C. Less elastic in market Y than market X D. The same in both market X and Y