Refer to Table 1-3. What is Santiago's marginal cost if he decides to stay open for an extra two hours instead of one hour?
A) $18 B) $36 C) $38 D) $102
A
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Refer to Cost of Production. The short-run average cost of producing 60 units of output per week is
The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.
a. $3 per unit.
b. $4.50 per unit.
c. $5 per unit.
d. $9 per unit.
When price is greater than marginal cost for a firm in a competitive market,
a. marginal cost must be falling. b. the firm must be minimizing its losses. c. there are opportunities to increase profit by increasing production. d. the firm should decrease output to maximize profit.
Suppose that FDI has "spillover" benefits for the recipient nation (such as spurring technological innovation, more FDI, or growth in labor productivity). These spillover effects might help explain why:
a. in Singapore, wages fell in the short run. b. in Singapore, wages fell and returns to capital rose in the long run. c. in Singapore, wages rose and, depending on the calculation used, returns to capital were close to original levels in the long run, which contradicted the HO model. d. in Singapore, absolutely nothing changed in either the short or the long run.
What is the most widely followed short-term interest rate?
A. the government bond rate B. the commercial paper rate C. the three-month Treasury bill rate D. the federal funds rate