For Elliot's dog-walking service, the only variable input is labor. Elliot's labor costs are $300 a day and his service walks 30 dogs per day. To walk 31 dogs per day, his labor costs increase to $305 a day. The marginal cost of walking that 31st dog is
A. $5.
B. $9.83.
C. $19.52.
D. indeterminate from the information given.
Answer: A
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Because the price effect is smaller when there are _________ firms, each firm will increase its quantity by __________ before the price effect and quantity effect are equal.
A. more; more B. less; more C. similar; less D. more; less
In the aggregate demand-aggregate supply model, the short-run effects of an unanticipated increase in the money supply will be
a. lower real interest rates and an increase in aggregate demand. b. higher real interest rates and an increase in aggregate demand. c. lower real interest rates and a reduction in aggregate demand. d. higher real interest rates and a reduction in aggregate demand.
When Firm X doubled its output, it was found that its cost per unit declined by 10 percent. It can be concluded that
A. the firm was facing external scale diseconomies. B. the firm was operating on the inelastic portion of the demand curve. C. the firm was enjoying internal scale economies. D. the marginal cost of production at the initial output level was constant.
Income taxes are taxes paid on wages and investment income.
Answer the following statement true (T) or false (F)