When Jim adds $1,000 worth of farm equipment to his production process, he finds that his corn output increases from 200 to 350 bushels. If the price of corn is $2 per bushel, the marginal revenue product of capital is
a. $10
b. $150
c. $300
d. $350
e. $1,000
C
You might also like to view...
Constructing the CPI involves which of the following stages? i. conducting the monthly price survey ii. converting the CPI to an international index iii. selecting CPI market basket
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Medicare is an example of a third-party payment for medical services that
A) causes providers to supply less of medical services than they would without the payment. B) causes buyers to consume more of medical services than they would without the payment. C) does not cause any change in the equilibrium position for medical services which existed without the subsidy. D) causes the price of medical services to rise for the consumer once the payment is provided.
According to this graph, which of the two components of aggregate expenditure are most alike in their proportion of the whole?
a. consumption and investment
b. investment and net exports
c. consumption and government purchases
d. government purchase and net exports
An increase in which of the following determinants of demand will have an ambiguous (uncertain) effect on price?
A. price of a complement B. taste C. price of a substitute D. income