Sally runs a hair styling salon. Sally is a profit-maximizing owner whose firm operates in a competitive market. The marginal cost of a haircut is $15 . What is the maximum wage that Sally will pay her stylists?
a. less than $15 per haircut
b. $15 per haircut
c. more than $15 haircut
d. There is insufficient information to answer this question.
d
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If we are interested in knowing whether a poor country is improving economically, we want to know not only what the economic growth rate is, but also
A) whether the economic growth rate is faster than other nations' growth rates. B) whether government spending is growing at the same rate. C) whether the economic growth rate is greater than last year's rate. D) whether the lowest income groups are benefiting from the growth.
The change in total cost resulting from a one-unit increase in production is called: a. average fixed cost
b. average variable cost. c. marginal cost. d. marginal revenue.
The idea behind comparative advantage reflects the possibility that one party a. may be able to produce something relatively more efficiently than another. b. may be able to produce something at a lower opportunity cost than another. c. may be able to produce something more cheaply than another
d. all of the above
"People who make more money should pay higher taxes" is an example of
a. the benefits principle. b. horizontal equity. c. vertical efficiency. d. the ability-to-pay principle.