Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 5 hours per day
If he is following the marginal principle, what must his marginal cost per hour be?
A) $16 B) $24 C) $32 D) $40
C
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There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) decrease; decrease further B) increase; decrease to its initial value C) increase; increase further D) decrease; increase to its initial level
A perfectly free market system may not be efficient in terms of minimizing pollution, unsafe working conditions, unfair hiring practices, and a grossly uneven distribution of wealth.
Indicate whether the statement is true or false.
The main reason for the rising market value of corporate stock is
A) falling interest rates. B) changes in tax laws. C) increases in the prices of existing stock. D) the increased supply of new stock.
Hughes and Cain (2011) ask: Who suffered from the tariff in the 19th century? What was their answer?
(a) the government (b) producers of import-competing goods (c) consumers (d) workers in import-competing industries