As a firm hires more workers, holding the amounts of capital and other inputs constant,
A) output increases at a decreasing rate.
B) output increases at a constant rate.
C) output increases for a while and then decreases.
D) output increases, but we can't be certain whether output increases at an increasing or a decreasing rate.
A
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If it costs Vijay $150 to design 5 Web sites and $175 to design 6 Web sites, then $175 is the marginal cost of producing the 6th Web site
Indicate whether the statement is true or false
The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm for $20,000. It pays its workers $35,000, pays $1000 in taxes, and has profits of $3000. What is its value added?
A) $3000 B) $19,000 C) $39,000 D) $59,000
Firm A and Firm B are the only two producers of a new solar powered cell. Society will gain the most when both firms decide to: a. form a cartel
b. merge. c. differentiate their products. d. produce at the downward-sloping part of their respective average total cost curves.
Suppose a country has only a sales tax. Now suppose it replaces the sales tax with an income tax that includes a tax on interest income. This would make equilibrium
a. interest rates and the equilibrium quantity of loanable funds rise. b. interest rates rise and the equilibrium quantity of loanable funds fall. c. interest rates fall and the equilibrium quantity of loanable funds rise. d. interest rates and the equilibrium quantity of loanable funds fall.