A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. What is the marginal cost of producing the computers that Pam can assemble during her 3rd hour of work?
A. $5,400
B. $1,240
C. $1,200
D. $5,520
Answer: B
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An economic community
(a) attempts to raise prices by restricting quantity. (b) seeks to stabilize commodity prices. (c) seeks concessional loans. (d) imposes a common external tariff. (e) none of the above.
The Solow model is distinct from the Romer model in that an increase in population tends to cause ________
A) a permanent decrease in the standard of living in the Romer model B) an increase in spillover effects in the Solow model, but not in the Romer model C) a permanent increase in the standard of living in the Solow model D) a permanent increase in the standard of living in the Romer model
Expansionary monetary policy _______________ Real GDP ______________ in an open economy than in a closed economy
A) raises; more B) raises; less C) lowers; more D) lowers; less
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower