A tax and a regulation that have the same effect on output in the short run will have different effects in the long run. _____ creates profits which encourages _____, while _____ creates losses and encourages _____

Use the data in the above table and suppose that labor is the only variable factor of production. At what level of output does the marginal cost start to rise at Decent Donuts?

A) 0 dozen donuts B) 111 dozen donuts C) 128 dozen donuts D) There is not enough information given to determine when the marginal cost starts to increase.

The above table shows the total product schedule for the campus book store. If employees are paid $6 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?

A) $6.00 B) $4.00 C) $2.07 D) $1.50