Refer to the above table. How many more workers will the firm hire when the wage rate is $15 instead of $30?
A. 1 worker
B. 2 workers
C. 3 workers
D. 4 workers
B. 2 workers
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An item's ability to serve as money does not depend on its own market value or _______________
Fill in the blank(s) with the appropriate word(s).
The market price of physical capital is $10 and the market wage rate is $5. If a firm is optimally hiring an additional unit of physical capital, the value of the marginal product of physical capital is:
A) $1. B) $2. C) $10. D) $50.
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What is the spending multiplier of this economy?
a. 2 b. 1.4 c. 0.7 d. 0.9 e. Cannot be determined with the given information
Refer to the information provided in Table 14.2 below to answer the question that follows. Table 14.2B's Strategy ?AdvertiseDon't Advertise??A's profit $100 millionA's profit $200 million?AdvertiseB's profit $100 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $75 million?AdvertiseB's profit $200 millionB's profit $75 millionRefer to Table 14.2. What is the Nash equilibrium in the game?
A. (Don't Advertise, Advertise) B. (Advertise, Don't Advertise) C. (Advertise, Advertise) D. (Don't Advertise, Don't Advertise)