Refer to Table 8.3 . Assume the price of labor is $5.00 and the price of capital is $10.00 and the firm's fixed costs are $15
What production technique will be used to produce the first unit of output? The second? The third? What are the firm's total variable costs, total costs, and marginal costs of producing one unit of output? Two units of output? Three units of output?
The firm will produce the first unit using technique B, the second unit using technique A, and be indifferent between techniques A and B for the third unit. TVC are $25, $45, and $60; TC are $40, $60, and $75; MC are $25, $20, and $15
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Almost everyone is affected directly or indirectly by high rates of employment or high and variable rates of inflation
a. True b. False Indicate whether the statement is true or false
The net present value of $1,000 received at a time in the future would
a. decline if the $1,000 were received sooner. b. increase if the delivery date for the $1,000 were set farther into the future. c. increase if the interest rate rose. d. increase if the interest rate fell.
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, more years of work would be required to pay off a student loan if all prices (including your salary):
A. remained stable. B. increased by 20 percent. C. decreased by 10 percent. D. increased by 40 percent.
Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. 
Figure 13.2 Refer to Figure 13.2. The marginal revenue of the fifth pound of cheese is
A. $1. B. $3. C. $6. D. $24.