A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day. The firm pays its workers a wage of $160 per day. For the 10th worker, the value of the marginal product of labor is
a. $250.
b. $400.
c. $500.
d. $1,280.
c
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Suppose your neighbor has a beautiful garden. The benefit that she enjoys from her garden is called ________ and the benefit the rest of the neighborhood enjoys is called ________
A) marginal private benefit; marginal external benefit B) private cost; external cost C) marginal social benefit; marginal external benefit D) marginal external benefit; marginal social benefit
Any increase in efficiency increases only profits of producers, with no increase in output.
Answer the following statement true (T) or false (F)
Information asymmetry is a problem when:
A. a market is highly inefficient. B. a market is highly efficient. C. a buyer and seller have aligned incentives. D. a buyer and seller have opposing incentives.
Brazilian subsidies on its exports of furniture to the United States. Which type of tariff will be applied on U.S. imports of Brazilian furniture?
a. antidumping duties b. countervailing duties c. export duties d. safeguard duties levied under Section 421 of the amended U.S. Trade Act of 1974