Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid $42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day?
A) $1.91
B) $2.16
C) $2.41
D) $3.06
C
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Which of the following statements about Coasian reasoning is true?
a. Coasian reasoning lacks symmetry, it does not provide a starting point for negotiations toward an efficient outcome. b. Coasian reasoning emphasizes on the benefits received by the person having more rights compared to the others in the group. c. Coasian reasoning explains how the costs and benefits of a transaction are distributed among the parties. d. Coasian reasoning provides a starting point for negotiations toward an efficient outcome, if the cost of negotiation is low.
A problem with using fiscal policy to? fine-tune the economy is that
If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 5 percent, then the
A) real rate of interest is equal to the nominal rate. B) real rate of interest is less than the nominal rate. C) nominal rate is greater than the real rate of interest. D) investment demand schedule will shift upward.
"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly.". This statement
a. represents an unconventional view of the production process. b. is an assertion that capital is subject to increasing returns. c. is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. d. All of the above are correct.