A firm produces 60 units of output with 5 workers, 65 units with 6 workers, and 68 units with 7 workers. The firm's production function exhibits diminishing marginal productivity between 5 and 7 workers
a. True
b. False
Indicate whether the statement is true or false
True
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If Alex uses $800 from her checking account to pay her credit card balance, her wealth:
A. does not change. B. decreases by $800. C. increases by $800. D. increases by $1,600.
The university you attend needs to increase total revenue. The president suggests that by raising tuition by 5%, total revenue will increase. However, after the tuition increase, total revenue actually fell
What can you infer about the price elasticity of demand for an education at your university? Why is this likely to be true? What did your university president assume to be true about the price elasticity of demand for an education at your university?
What would happen if you increased the price to $3 and increased the quantity supplied to 4,000 pounds?
a. You would maintain the same shortage.
b. You would lessen the shortage.
c. You would reach equilibrium.
d. You would create a surplus.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.