Which of the following is an example of an organization using marginal analysis?
A. A hotel manager calculating the average cost per guest for the past year.
B. A farmer hoping for rain.
C. A government official considering what effect an increase in military goods production will have on the production of consumer goods.
D. A business calculating economic profits.
Answer: C
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Consider a firm that has just built a plant, which cost $1,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below
Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost 0 0 -- -- -- 50 400 100 900 150 1300 200 1600 250 1800 300 1900 350 1950
Which of the following is likely to result in a lower equilibrium price? a. An increase in both demand and supply
b. A decrease in both demand and supply. c. An increase in demand and a decrease in supply. d. A decrease in demand and an increase in supply.
In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?
A. $4,000 B. $8,000 C. $12,000 D. $16,000
In this supply and demand curve, the tax causes the equilibrium quantity of the good (bought and sold) to ______.
a. rise
b. fall
c. move further right on the demand curve
d. move further right on the supply curve