Refer to the above table. Suppose the firm hires 5 workers and the price of the good sold is $3. The marginal factor cost of labor must be
A. $900.
B. $3.
C. $100.
D. $300.
Answer: D
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Which of the following statements is true?
A. The Federal Reserve sets the federal funds rate. B. The Federal Reserve will set a higher target for the federal funds rate if pursuing an expansionary monetary policy. C. The Federal Reserve sets the target for the federal funds rate, and then uses the reserve requirement to push banks toward that target. D. The Federal Reserve does not set the federal funds rate, but it influences it through the use of its open-market operations.
Monopolistically competitive firms face a perfectly elastic demand curve
Indicate whether the statement is true or false
In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?
A) The demand curve will shift to the right and became more elastic. B) The demand curve will shift to the right and became less elastic. C) The demand curve will shift to the left and became more elastic. D) The demand curve will shift to the left and became less elastic.
The severe recession of 2008-2009 was precipitated by:
What will be an ideal response?