If the price of output? increases, the marginal revenue product curve will shift? ________ and the profit maximizing quantity of labor demanded will? ________.

A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. The marginal social cost, private marginal cost, and marginal benefit from producing chemicals are in the figure above

Initially the lake is owned by no one. Keeping in mind the Coase theorem, if transactions costs are low then if the chemical factory owns the lake ________ tons of chemicals will be produced and if the fishing club owns the lake, ________ tons of chemicals will be produced. A) 4; 4 B) 4; 8 C) 8; 4 D) 8; 8

The tragedy of the commons was avoided in the Middle Ages by

A) the government which imposed a tax for the use of the commons. B) the local police who monitored entry into the commons. C) social pressure to uphold traditionally accepted limits on family use of the commons. D) selling common grounds to individuals.

Which of the following assets is almost riskless?

A) Common stocks B) Long-term corporate bonds C) U.S. Treasury bills D) Long-term government bonds E) Apartment buildings

When a random demand and marginal cost are linear, producing the quantity at which the marginal cost equals the ________ maximizes ________.

A) expected marginal revenue; expected profit B) marginal revenue; profit C) marginal revenue; expected profit D) expected marginal revenue; profit