The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 40 units of labor, what is AVC at this level of output?
A. $40
B. $86
C. $400
D. $120
E. $70
Answer: E
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Refer to the table below. What is the probability of selling less than 24 cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.00
B) 0.10
C) 0.90
D) 0.80
Which was a common sociopolitical/economic feature of Colonial America?
a. Difficulty in the expansion of agriculture b. Commercial production of finished metal parts for locomotion c. Significant improvement of infrastructure, especially roads d. None of the above is correct.
In the long run
a. both supply and demand shocks have permanent effects on real GDP. b. real GDP can remain below potential. c. real GDP can remain above potential. d. both supply and demand shocks have no effect on real GDP. e. supply shocks have permanent effects on real GDP but demand shocks have no effect.
On average, over the last 50 years or so world trade has
a) increased faster than world output b) been primarily concentrated in agriculture c) been dominated by Middle East oil exports d) declined as nations closed their borders to imports e) been conducted almost exclusively over the internet