A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000 . The marginal cost of producing the 100th unit of output is $700 . What is the total cost of producing 100 units?
a. $900
b. $4,200
c. $4,700
d. $4,900
c
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Which of the following statements about utility and preferences is false?
A) If Sidra prefers tea to coffee and coffee to hot chocolate, then she must prefer tea to hot chocolate. B) If two individuals, Ingrid and Inez, each consume the same bundle of goods, then both Inez and Ingrid must receive the same utility from the bundle. C) Utility cannot be compared across consumers. D) Preferences can be ranked.
Consider the Taylor rule for the target of the federal funds rate
Suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation is 3 percent, the current inflation rate is 3 percent, real GDP equals potential real GDP, and the weights are 1/2 for the inflation gap and the output gap. Using the Taylor rule, what does the target for the federal funds rate equal? Next, if the Federal Reserve lowered the target for the inflation rate to 1 percent, how much would the target for the federal funds rate change?
The time it takes for policy makers to be sure of what the data are signaling about the future course of the economy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
The M1 definition of the money supply includes:
a. coins and currency in circulation. b. coins and currency in circulation and checkable deposits. c. Federal Reserve notes, gold certificates, and checkable deposits. d. Federal Reserve notes and bank loans.