Use the following table to answer the next question.OutputATC Plant 1ATC Plant 2ATC Plant 3ATC Plant 41,500$10$15$20$302,00081217252,50091015203,00012813183,50015611164,00018109144,50020127125,000241511105,50029191386,0003525159Plant sizes get larger as you move from Plant 1 to Plant 4. In the long run, the firm should use Plant 3's size for what level of output?
A. Less than 3,000 units
B. 4,000 to 4,500 units
C. 3,000 to 3,500 units
D. 5,000 to 5,500 units
Answer: B
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The concept of inferior goods can be used to show that
A) lower prices signal poorer quality. B) indifference curves can have positive slopes. C) being able to consume more of all goods does not mean that a person will consume more of every good. D) consumers will always buy more of all products if their incomes increase.
Given the production function q = 1.37LK, what is the marginal product of labor?
A) 1.37 B) 0 C) 1.37K D) Cannot be determined with the information given.
The Fed has control over bank reserves and complete control over the money supply
a. True b. False Indicate whether the statement is true or false
If many people were to suddenly deposit into their checking accounts large sums of cash previously held in their homes and/or wallets, and there were no offsetting actions by the Fed or change in institutional policies, this would
a. decrease the M1 money supply but increase the M2 money supply. b. increase the excess reserves of banks and expand the money supply if these reserves are used to make additional loans. c. reduce the excess reserves of banks and indirectly decrease the M1 money supply. d. reduce the excess reserves of banks and indirectly increase the M1 money supply.