Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the total cost of production when the firm hires 7 workers?
a. $66
b. $76
c. $906
d. $946
b
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Real interest rates are the
A) interest rates quoted in the market. B) interest rates quoted in the market plus the expected inflation rate. C) nominal interest rates plus the inflation rate. D) interest rates quoted in the market minus the inflation rate.
The curve labeled A in the above figure is
A) a short-run aggregate supply curve. B) an aggregate demand curve. C) a long-run aggregate supply curve. D) a production possibilities curve.
In considering the criteria for an ideal voting system, the idea of an irrelevant alternative refers to:
A. when an option is added to a vote and is unrelated to the issue being voted on. B. different voting methods that could alternatively be used, but would not change the outcome. C. when an option is added to a vote and has no realistic chance of winning. D. different voting methods that could alternatively be used, and could change the outcome.
Other things constant, if the interest rate rises, people prefer to hold _____
Fill in the blank(s) with the appropriate word(s).