If the price elasticity of demand for food is 0.03, then a 6 percent increase in the price of food will lead to a ________ decrease in quantity demanded.
A. 0.018 percent
B. 18 percent
C. 1.8 percent
D. 0.18 percent
Answer: D
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Refer to Table 1-2. What is Thuy Anh's marginal cost if she decides to stay open for an extra three hours instead of two hours?
A) $0 B) $16 C) $25 D) $32 E) $45
The wage rate is the opportunity cost of
A) leisure. B) consumption. C) working overtime. D) working.
Assume a firm has the following cost and revenue characteristics at its current level of output: price=$8.00 . average variable cost=$6.00 and average fixed cost =$4.00 . In the long run, the firm
a. Should shut-down as its making a loss of $2 b. Should continue operating as long as it is covering the variable costs of $6 c. Should continue operating as long as it is covering the fixed costs of $4 d. Should not shut down
Refer to Table 10.1. The marginal product of the fifth unit of labor is:
A. 8. B. 40. C. 50. D. 250.