Wally's Widgets currently hires 8 workers. The average product of labor is 15 widgets per day, and the marginal product of a 9th worker is expected to be 13 widgets per day
If the firm hires the 9th worker, what will happen to the average product of labor? Explain.
If the firm hires the 9th worker, the average product of labor will fall. Whenever marginal product is lower than average product, average product will be falling.
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In order for a monopolist to earn a pure economic profit in short-run equilibrium, price must exceed average total cost
a. True b. False Indicate whether the statement is true or false
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the financial account and monetary base
a. Financial account would rise and monetary base would fall. b. Financial account would not change and monetary base would fall. c. Financial account would fall and monetary base would not change. d. Financial account would fall and monetary base would fall. e. Financial account would fall and monetary base would rise.
A cost imposed on people other than the consumers of a good or service is a:
a. price floor. b. negative externality. c. price ceiling. d. positive externality.
A bond is
A) a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B) the share of profits distributed to bondholders. C) a promise to pay for the use of someone else's money. D) a promise of ownership of the government. E) c and d