The marginal cost of Alexa’s Guide to Street People and Their Pets is constant at $5. Alexa sells 5,000 copies per year at $20 per copy. She would like to increase readership and hold total profit constant. If the price goes to $15, how many copies must she sell?
A. 10,000
B. 9,000
C. 7,500
D. 6,000
Answer: C
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Refer to the figure above. What is the equilibrium wage rate and employment level after the labor demand curve shifts to LD2?
A) $50 and 50 units of labor B) $40 and 30 units of labor C) $20 and 40 units of labor D) $10 and 60 units of labor
Villagers in Xiaogang, China, produced more rice than those in surrounding villages because:
a. they had better farmland. b. they were given better seeds. c. they were able to keep the output they produced individually. d. they made each family responsible for a certain, higher quota of rice production. e. they had common ownership over the rice produced.
If the price of the product produced by labor decreases, the marginal revenue product of labor curve will
A. become more inelastic. B. shift to the left. C. shift to the right. D. be unaffected because productivity of labor has not changed.
Electric companies generally practice price discrimination and charge higher prices for electricity used for illumination and lower prices for electricity used for heat. These lower prices for electric heating result primarily from:
A. The existence of good heating substitutes B. Economies of scale in electric heat generation C. Prices for electric heat being set at the socially optimal level D. Strict government regulation of the price charged for electric heat