Explain how the presence of a superstar basketball player can increase the marginal revenue product of the other players on the team.
What will be an ideal response?
The superstar is a complement, raising the other players' marginal products by diverting the opponents' defense toward him and away from the others. The others are more likely to perform better against a divided defense.
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Use the following graphs to answer the next question.
In the diagrams above, AD1 and AS1 represent the initial state of an economy. If full-employment output is at Q2, which diagram represents the adjustment back to full employment output in the absence of government intervention? ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (B) and (C)
A. monitor and enforce trade agreements, while also promoting free trade.
A. safety policies. B. labor standards. C. environmental regulations. D. All of these are true.
Isabella wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $1.50 per gallon, the car wash costs $1, but if she buys 10 gallons of gasoline, the car wash is free. For Isabella, the marginal cost of the tenth gallon of gasoline is
a. zero. b. 50 cents. c. $1. d. $1.50.
Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. Average variable cost will be at a minimum when the firm is hiring:
A. Q 3 workers.
B. Q 2 workers.
C. Q 1 workers.
D. more than Q 3 workers.