What is marginal factor cost? How is it related to the supply curve of an input?
What will be an ideal response?
Marginal factor cost is the cost of using an additional unit of an input. In the case of labor, this equals the wage. For a price taker in input markets, the marginal factor cost equals the price of the input and is the supply curve of the input too.
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Refer to the scenario above. If the size of population is same in both the countries, at the steady-state equilibrium:
A) the GDP per capita of country A will be higher than that of country B. B) the GDP per capita will be the same in both countries. C) the capital stock will be the same in both countries. D) the GDP per capita of country B will be higher than that of country A.
Which of the following is most likely to be observed in a community where legal ceilings are imposed on residential rents?
A) Landlords will do a better job of property maintenance. B) People moving into the community will have difficulty locating residential space to rent. C) Poor people will be able to find adequate housing. D) Tenants will reduce their use of housing space. E) The people most in need of housing will be able to obtain the space they want.
Consider the total cost of traveling from point A to point B
The cost of traveling by car would include the cost of gasoline and the opportunity cost of time; the cost of hopping on a bus would include the bus ticket and the opportunity cost of time. Assume that the bus ticket costs less than the gasoline. Does this imply that using a bus to get to the destination involves lower total costs than getting there by car? What if the bus doesn't take the fastest route from point A to point B?
If we have a small standard error, then
A) the estimated coefficient is small. B) the true demand function has imprecise coefficients. C) the expected variation of the estimated coefficient is small. D) the estimated coefficients are imprecise indicators of the true values.