A firm hires labor, capital, and land to produce grapefruits. Currently the marginal product of the last unit of labor input is 40, the marginal product of the last unit of capital input is 60, and the marginal product of the last unit of land input is 200. The market wage is $20 and the market price for capital is $30. If the firm is using the optimal combination of inputs, then the price of land is
A. $4.
B. $40.
C. $100.
D. indeterminate from the given information.
Answer: C
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Which of the following tools is NOT a policy tool of the Fed?
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A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied
a. True b. False Indicate whether the statement is true or false
Examples of monopolistically competitive markets include the markets for
a. restaurants and furniture. b. wheat and corn. c. postage stamps and wooden pencils. d. All of the above are correct.