If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is
a. 15 units of output
b. 5 units of output
c. 3 units of output
d. 45 units of output
e. 75 units of output
C
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An individual derives utility from consuming "all other goods," g, and clean air (measured by the reduction in particulate matter per m3), a, as measured by the utility function U(g,a) = g0.6a0.4
The price of consumer goods equals $20 and the price of clean air (abatement) equals $10. What is the slope of the Engel curve when income increases from $100 to $200? A) The slope is 25. B) The slope is -25. C) The slope is zero. D) The slope is infinite.
The four important characteristics that define a perfectly competitive market are:
A. standardized good, full information, no transactions costs, participants are price takers. B. standardized information, finished good, no transactions costs, participants are price makers. C. standardized good, same information for buyer and seller, low transactions costs, participants are price takers. D. standardized good, full information, no transactions costs, participants are price makers.
If each of us relied exclusively on the market to determine what to buy, we would probably end up with few, if any
a. streetlights b. strawberries c. CDs d. raincoats e. televisions
The more complicated a task, the greater the ability to economize on ________ through specialization and centralized control
a. transaction costs b. marginal cost c. sunk cost d. fixed cost