Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe if he orders a hamburger, instead of a hot dog, is
A. $1.
B. $2.
C. $2.50.
D. $3.
Answer: A
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Monopolistically competitive firms
A) have market power because they can set price above marginal cost. B) have no market power because they earn zero economic profit. C) have no market power because of free entry. D) have no market power because price equals marginal cost.
Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and there is wage discrimination in the union and nonunion sectors
If the union shifts its policy from maximizing total economic rents to maximizing total wages earned by members, what happens to the equilibrium employment level and wage for non-union workers? A) Both increase. B) Employment increases and wage declines. C) Wage increases and employment declines. D) Both decline.
In its function of controlling the money supply, the Fed does which one of the following?
a. Controls the money supply. b. Clears checks. c. Regulates banks. d. Holds gold belonging to foreign governments. e. All of these.
Which workers in the following countries worked the least amount of hours in 2008?
A. The United States B. Japan C. Germany D. France