The time at which all costs become variable costs is called the ____________.
Fill in the blank(s) with the appropriate word(s).
long run
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The social interest theory of regulation predicts that the political process will seek to minimize
A) producer surplus. B) consumer surplus. C) total surplus. D) deadweight loss.
It is possible to have an absolute advantage in producing a good or service without having a comparative advantage
Indicate whether the statement is true or false
Clarke Mementos manufactures small figurines that they sell to retailers around the country. Clarke sells the figurines for $5.00 each, a price the firm considers given. Clarke's production function is given by the expression:
Q = 60L - 0.5L2, where Q = number of figurines per day, and L = number of skilled workers per day. Based on this production function, the average and marginal products of labor are as follows: AP = 60 - 0.5L MP = 60 - L a. Write an expression for the firm's marginal revenue product. b. Clarke currently pays $150 per day (including fringe benefits) for each of its skilled workers. How many workers should the firm employ? c. Clarke's workers are highly skilled artisans with a great deal of job mobility. The firm's managers fear that they must increase the workers' total compensation to $200 per day to remain competitive. What impact would the wage increase have upon the firm's employment?
The federal funds rate is the interest rate that:
A. the Fed charges to banks that borrow from it. B. banks charge the Fed for using their reserves. C. the Fed pays on bank reserves. D. banks charge each other for borrowed money.