A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helping uneaten. Why?
What will be an ideal response?
Her marginal value of an additional bite of food has fallen to zero.
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If the marginal product of labor is positive and increasing, then the total product of labor curve is
a. constant b. upward sloping and becoming steeper c. downward sloping and becoming flatter d. lies above the total cost curve e. lies below the total cost curve
A depreciation in Micromania's currency, the micro, occurs when the exchange rate changes from
a. 50 micros = $2 to 25 micros = $1 b. 100 micros = $2 to 200 micros = $1 c. $1 = 75 micros to $2 = 100 micros d. $3 = 75 micros to $1 = 25 micros e. $1 = 50 micros to $2 = 50 micros
The nominal rate of interest is
A. not influenced by inflation. B. the interest rate observed in the market minus the inflation premium. C. a value that depends upon the stock market. D. the interest rate observed in today's market.
If there is a decrease in industry supply while the industry demand curve remains the same, then an individual firm in a perfectly competitive industry currently earning profits will see its profits
A. not change. B. decrease. C. increase. D. impossible to determine.