The state is considering adding a satellite campus to its major university. How can marginal analysis assist, even though the university does not attempt to maximize profits?
Marginal analysis provides the general rule that something is worth doing as long as marginal benefits exceed marginal costs, and one should stop where marginal benefits equal marginal costs. The state should compare the benefits of providing its citizens with another campus versus the costs associated with any alternative courses of action. If marginal benefits exceed marginal costs, then the state should proceed with the satellite campus plans.
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When marginal utility is negative, then total utility is
a. positive b. decreasing c. zero d. increasing e. infinite
One explanation for long-run unemployment is that it takes time for workers to search for the jobs that are best suited for them
a. True b. False Indicate whether the statement is true or false
If the terms of trade between any two countries lie somewhere between their respective opportunity costs, then the effects of trade will include
A. An expansion of the production possibilities for both countries. B. Less interdependence between the economies of the two countries. C. Consumption outside the production possibilities curve for both countries. D. Less output for both countries.
A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. Beginning at A, if the producer increases expenditures on labor by $1 and decreases expenditures on capital by $1, then
A. output remains constant and cost increases by $8. B. cost remains constant and output decreases by 8 units. C. cost remains constant and output increases by 12 units. D. cost remains constant and output increases by 20 units. E. output remains constant and cost decreases by $2.