Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.What is the marginal cost?
A. $0.63
B. $3.20
C. $1.60
D. $0.94
E. none of the above
Answer: E
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A) inflation and the housing boom. B) the dangers of high interest rates. C) increases in consumer wealth. D) the down-side of leverage.
In a market with positive externalities, the market equilibrium quantity will be less than the efficient equilibrium quantity
Indicate whether the statement is true or false
Economists who support a monetary rule as opposed to an activist monetary policy believe that the effectiveness lag in monetary policy is
A) short and variable, policy changes affect AD quickly and are predictable. B) zero, policy changes have an immediate effect on expenditures. C) long and variable, policy changes affect AD slowly over time and are unpredictable. D) long, but predictable.
Statistical discrimination using gender and age:
A. is legal in the insurance market, but not the job market. B. is legal in the job market, but not the insurance market. C. is legal in any market, but using race is not. D. is illegal in any market.