Which of the following variables do you need to know to calculate marginal cost?
i. change in total cost
ii. marginal product of labor
iii. change in quantity of labor used
iv. change in output
A) i and ii
B) i and iv
C) ii and iv
D) i, iii, and iv
E) Only ii
B
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An appropriate fiscal policy response when aggregate demand is growing at a slower rate than aggregate supply is to cut taxes
Indicate whether the statement is true or false
Which of the following is considered a contributive standard for the distribution of income?
A) rewarding workers according to their productivity B) rewarding workers according to their needs C) rewarding workers according to the number of their dependents D) all of the above
To minimize total costs for a particular rate of output, a firm will equate
A) the average cost of each factor. B) the marginal revenue of each factor. C) the marginal physical product per dollar spent on each factor. D) the marginal revenue product and variable marginal revenue for each factor.
Graphically, consumer surplus is measured by: a. the area below the demand curve
b. the area below the demand curve, but above the upward-sloping supply curve. c. the area below the demand curve, but above the market price. d. the area below the market demand curve, but above the supply curve.