The external marginal cost of producing coal is MCexternal = 6Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for coal is given by P = 120 ? 2Q. If the government taxed output at $2 per unit, what would a competitive industry produce?
A. 20
B. 15
C. 10
D. 8
Answer: B
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Which of the following activities are production?
A) combining flour, milk, and eggs to make cookies B) moving coal from southern Illinois to an electrical power plant in northern Illinois C) taking ice cubes from a tray to put in a drink D) All of the above are production.
At the equilibrium price, quantity demanded is equal to quantity supplied
a. True b. False Indicate whether the statement is true or false
A person who is not employed and claims to be trying hard to find a job but really is not trying hard to find a job is
a. counted as out of the labor force but should be counted as unemployed. b. counted as unemployed but should be counted as out of the labor force. c. correctly counted as out of the labor force. d. correctly counted as unemployed.
Increases in the productivity of labor result partly from:
A. the law of diminishing returns. B. improvements in technology. C. reductions in wage rates. D. increases in the quantity of labor.