Bonita's Braidworks hires workers to braid hair. The store sells the service for $25 per customer. The marginal revenue product of this store?s fifth worker is $50. The marginal product of the fifth worker is
A. 0.5 braided customers.
B. 2 braided customers.
C. 25 braided customers.
D. indeterminate from this information.
Answer: B
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In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm average total cost is
A) $10. B) $3. C) $7. D) $70.
As economies are predictable, economic risk presents executives with very few challenges.
Indicate whether the statement is true or false.
The opportunity cost of holding money
A. is zero because money is not an economic resource. B. varies inversely with the interest rate. C. varies directly with the interest rate. D. varies inversely with the level of national income.
Starting from a year in which gross domestic product for the economy is $8,000 billion, calculate how much output the national economy would produce in each of the next five years if it continued to grow at its potential real growth rate of 3%.How much output would the economy produce in each year if it grew by 4% the first year, 2% the second year, 1% the third year, -1% the fourth year, and -3% the fifth year? (Note: A negative growth rate means output is declining.)By the fifth year, how far is output below its potential level?
What will be an ideal response?