Indicate whether each of the following transactions represents the purchase of a final good
1. The purchase of tires from Bridgestone by an automobile manufacturer?
2. The purchase of two new elementary school buildings by the state government?
3. The purchase of french wine by a US consumer?
4. The purchase of a new machine tool by the Ford Motor company?
Answer:
2. The purchase of two new elementary school buildings by the state government?
3. The purchase of french wine by a US consumer?
4. The purchase of a new machine tool by the Ford Motor company?
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When a firm is experiencing decreasing marginal costs, it implies
a. marginal productivity is decreasing b. workers are getting more unproductive c. a constant marginal productivity d. increasing marginal productivity
Suppose you're producing designer clothes for Barbie dolls. You're producing 100 units and discover that the MR for the 100th unit is $50 while the MC of the 100th unit is $45 . If you're in the short run, it's a signal for you to
a. shut down b. stay where you are because you're making profit on that unit c. increase production beyond 100 units d. produce less than 100 units e. it's no signal because price data is unknown