The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. 
Given the above, if the firm produces 30 units of output, how many units of labor does the firm use?
A. 54
B. 45
C. 30
D. 60
E. none of the above
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. When using a damage function, incremental benefits are measured as a vertical distance of total damages (TD) associated with a decrease in some contaminant (C). 2. The averting expenditure approach is favored by researchers because it can capture both existence and user value. 3. The contingent valuation method is so called because it is contingent upon the hypothetical market that serves as the context for the survey. 4. The benefit estimation method that relies on goods that are complements to environmental quality is the averting expenditure method. 5. A known problem associated with the averting expenditure method is jointness of production, which refers togoods that provide services beyond those that improve the environment.
When negative externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low. B) market price which is too low and a market quantity which is too high. C) market price which is too high and a market quantity which is too low. D) market price which is too high and a market quantity which is too high.
Accounting profits are total revenues minus
A. explicit costs and all other relevant opportunity costs. B. explicit costs. C. explicit and implicit costs. D. all relevant opportunity costs.
The monetary base does NOT include
A) currency. B) reserves of depository institutions. C) checking accounts at commercial banks. D) commercial banks' reserves.