A market economy produces the optimal amount of each good at least cost where:
A) P > ATC.
B) P = ATC.
C) P > AVC.
D) P = MR.
B
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The present membership in the Federal Reserve System includes
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Suppose that a rare virus infects and kills a significant percentage of the population. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners?
a. Both wages and rents would increase. b. Both wages and rents would decrease. c. Wages would increase, and rents would decrease. d. Wages would decrease, and rents would increase.