Situation 37-2 Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 37-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A) steal more and produce less.
B) steal less and produce less.
C) produce more and steal more.
D) produce more and steal less.
D
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A seller's reservation price is generally equal to:
A. the seller's marginal cost. B. the market price. C. the buyer's reservation price. D. the seller's average cost.
Refer to Figure 9.9. At free trade, domestic consumption is
A) 5500; domestic production is 1000; imports are 4500. B) 5000; domestic production is 2000; imports are 3000. C) 4000; domestic production is 4000; imports are 0. D) 2000; domestic production is 5000; imports are 3000. E) 1000; domestic production is 5500; imports are 4500.
A widely held theory of bureaucratic behavior is that:
a. government bureaus seek to maximize their budgets. b. government bureaus operate at a profit. c. bureaus sell public goods and services in a market. d. bureaus are more concerned with satisfying consumer demand than are firms.
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, how much output does it produce?
A. 1,600 units B. 2,800 units C. 4,000 units D. 400 units E. none of the above