For constant returns to scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.
A. increase; higher
B. decrease; a change in
C. decrease; no change in
D. increase; lower
Answer: C
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A firm faces the following relationship between the real wage it pays and the effort exerted by its workers. The marginal product of labor for this firm is given by MPN = E (100 - N)/9. How many workers will the firm employ?
A) 96 B) 92 C) 88 D) 80
Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,
a. nominal GDP is $400, real GDP is $500, and the GDP deflator is 80. b. nominal GDP is $400, real GDP is $500, and the GDP deflator is 125. c. nominal GDP is $500, real GDP is $400, and the GDP deflator is 80. d. nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.
The Federal Trade Commission was created by Congress in the same year that the Clayton Act was passed.
Answer the following statement true (T) or false (F)
Refer to the following figure. At a price of $10, the point elasticity of demand for D3 is ________ and marginal revenue is ________.
A. -0.5; negative B. -5; positive C. -0.2; negative D. -1; zero