Suppose a firm can hire 100 workers at $8.00 per hour but must pay $8.05 per hour to hire 101 workers. Marginal factor cost (MFC) for the 101st worker is approximately equal to:
A. $8.00.
B. $8.05.
C. $13.05.
D. $13.00.
Answer: C
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When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long-run aggregate supply curve
A) slopes upward. B) slopes downward. C) is vertical. D) is horizontal.
Disneyland price discriminates because
A) everyone loves going to The Happiest Place on Earth, so they'll pay whatever Disneyland wants to charge. B) children are cheaper to service, so Disneyland can charge lower prices for a children's ticket. C) only a certain number of people can get into Disneyland at any given time, limiting supply, and the market demand curve is nearly completely inelastic. D) local residents likely wouldn't go to the park at prices Disneyland can charge for tourists, which would reduce Disneyland's profits.
An example of a good or service that would count in the U.S. GNP would be a bag of coffee made in:
A. Vermont by Green Mountain Coffee Roasters. B. Colombia by Dunkin' Donuts. C. Canada by Starbucks. D. All of these would count in U.S. GNP.
The firm's break-even point occurs at an output of
A. 40.
B. 45.
C. 50.
D. 55.