Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 6 hours per day. If he is following the marginal principle, what must his marginal cost per hour be?
A. $16
B. $24
C. $32
D. $48
Answer: B
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Every society faces some basic economic choices such as
a. what quantities of goods and services to produce. b. which resources to use. c. who gets to have what share of the output. d. All of these.
When is it not in the best interest of a company to hire additional workers in the short run?
A) when the average product of labor is decreasing B) when the firm is in Stage II of the production process C) when the marginal revenue product equals zero D) when the wage rate is equal to or greater than labor's marginal revenue product
Existing loopholes erode the progressivity of the U.S. tax system
a. True b. False Indicate whether the statement is true or false
If an individual’s income increases by $100, then their spending will increase by less than $100.
Answer the following statement true (T) or false (F)