Refer to the graph shown. If the firm's total cost is $375, capital must cost:
A. $2.50 per unit.
B. $31.25 per unit.
C. $3 per unit.
D. $37.50 per unit.
Answer: B
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Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?
What will be an ideal response?
Sadie has just eaten a donut and says it gave her a utility of 6. If she chooses to eat another donut:
A. we can assume she will get an increase in utility of at least 6 from the additional donut. B. we can assume she will get a decrease in utility from the additional donut. C. we can assume she will get an increase in utility of less than 6 from the additional donut. D. we can assume Sadie's total utility will fall because of diminishing marginal utility.
The Federal Reserve System has the power to: a. raise or lower federal income tax rates
b. balance the federal government budget. c. increase or decrease federal government spending. d. compete with commercial banks in making loans to business firms. e. buy and sell federal government securities.
If the marginal cost of producing steel exceeds the marginal utility of using steel, then for economic efficiency,
A. the price of steel should fall. B. society should produce less steel. C. the price of goods made with steel should fall. D. society should direct resources toward steel production and away from the production of other goods.