Refer to Figure 10.2. If in this economy the MPC = 0.6, Y2 = $50 billion, and AE2 is $5 billion below AE1, potential GDP is
A) $53 billion.
B) $55 billion.
C) $58.3 billion.
D) $62.5 billion.
D
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The existence of an externality is proof that there is a
a. market failure b. undervaluation of a good c. overvaluation of a cost d. property dispute e. free-rider problem
The efficient price of a license fee is determined by the difference between
a. Marginal revenue and marginal cost b. Average revenue and marginal cost c. Total revenue and total cost d. Average revenue and total cost e. Total revenue and marginal cost
Refer to the following figure. The price of capital is $50 per unit:
How many units of labor should the firm use in order to produce 400 units of output at the least cost?
A. 100 B. 105 C. 110 D. 115
two goods that are used together. when the price of a complementary good rises, the demand for related good goes down
What will be an ideal response?