Market failure happens when a market does not generate the most efficient outcome

According to the above table, the marginal factor cost of the eighth worker is

A) $27.00. B) $48.00. C) $168.00. D) $216.00.

In the medium run, an increase in inflation causes

A) an increase in the opportunity cost of holding money. B) a reduction in the opportunity cost of holding money. C) no change in the opportunity cost of holding money. D) individuals to switch from holding bonds to money and increase their real money balances.