This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, when 1 unit is produced:
A. marginal revenue exceeds marginal costs, and the firm should produce more.
B. marginal costs exceed marginal revenue, and the firm should produce more.
C. marginal revenue exceeds marginal costs, and the firm should produce less.
D. marginal costs exceed marginal revenue, and the firm should produce less.
Answer: A
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If you spend a large portion of your income on a good,
A) supply of that good would be price elastic. B) demand for that good is more elastic than if you spent a smaller portion of your income on the good. C) supply of that good is price inelastic. D) demand for that good is less elastic than if you spent a smaller portion of your income on the good. E) the good must be able to be produced at a constant (or gently rising) opportunity cost.
If the marginal product of labor is less than the average product of labor, then the
A. marginal product must be increasing. B. average product must be decreasing. C. marginal product must be decreasing. D. Both B and C
Serafina was earning $75 per hour and working 50 hours per week. Serafina's wage rose to $90 per hour, and as a result, she now works 60 hours per week
What can you conclude from this information about the income effect and the substitution effect of a wage change for Serafina?
The natural rate of unemployment is a measure of
a) human capital b) long run equilibrium in the labor market c) the rate at which natural resources are extracted and depleted d) the size of the private sector relative to the public sector e) the rate at which marginal returns to labor are diminishing according to the economy’s long run production function