Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that marginal cost of the third worker hired is $40, and the average total cost when three workers are hired is $50 . What is the total cost of production when three workers are hired?
a. $50
b. $90
c. $120
d. $150
d
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What goods are available to all without direct payment?
A. private goods B. public goods C. common goods D. toll goods
Consensus research concludes that medical technology is responsible for much of the increase in medical care spending over the past several decades.This probably means
a. That better availability means wider use. b. That poorer availability means less use and poorer health outcomes. c. That medical care is increasingly expensive d. All of the above are correct.
The labor supply curve:
A. is made up of firms who want to hire workers at each given wage. B. is made up of workers who want to work for firms at each given wage. C. shows number of firms who are willing and able to hire workers at each given wage. D. shows that the number of firms who want to hire workers decreases as the wage increases.
The MR = MC rule applies:
A. to firms in all types of industries. B. only when the firm is a "price taker." C. only to monopolies. D. only to purely competitive firms.