Tony is the owner of Tony's Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?
a. $200
b. $8
c. $5
d. There is insufficient information available to answer this question.
c
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The concept of elasticity of supply measures the responsiveness of the
A) quantity supplied to a change in the price. B) price to a change in the quantity supplied. C) quantity supplied to a change in the quantity demanded. D) quantity demanded to a change in the quantity supplied.
Cigarette advertising on our nation's radio and television stations has been prohibited for more than the past three decades by federal law
What is curious about this law is that it came into being not just because of the lobbying efforts of American Medical Association but also by the tobacco industry. Use economic logic to explain this apparent paradox.
Refer to Figure 27-10. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) buy Treasury bills B) increase income taxes C) increase government spending D) decrease the discount rate
According to the graph shown, if this economy were an autarky, consumers would get area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A in consumer surplus.
B. ABC in consumer surplus.
C. ABCD in consumer surplus.
D. ABCDEFG in consumer surplus.