Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information and the fact
that the firm receives $200 per computer, the marginal revenue product of the third worker is
A) $4,200.
B) $12,000.
C) $10,000.
D) $14,000.
Answer: B
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Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?
A) The demand for Lincoln letters decreases and the demand for Booth letters increases. B) The demand for Booth letters increases. C) The demand for Lincoln letters increases and the supply of Booth letters increases. D) The supply of Lincoln letters increases.
If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina
a. True b. False Indicate whether the statement is true or false
How do economists refer to the change in a firm’s revenue that results from the addition of another piece of equipment?
a. marginal resource cost b. marginal input benefit c. marginal product cost d. marginal revenue product
Exhibit 12-7 Negative income tax
As shown in Exhibit 12-7, a family of four with no earned income receives ____ from the government.
A. zero payment. B. the break-even income of $40,000. C. a $20,000 payment. D. a $20,000 tax deferment.