If a monopolist has an output price of $10, marginal revenue equal to $4, and faces a fixed wage rate of $7, then the monopolist should hire labor until the marginal revenue product is equal to

The nonactivists who opposed the recent fiscal stimulus package argue that

A) fiscal stimulus would take too long to work because of long implementation lags. B) fiscal stimulus might kick in after the economy had already recovered. C) fiscal stimulus could lead to increased volatility in inflation and economic activity. D) all of the above. E) none of the above.

Investment in safety at the firm level poses a prisoners' dilemma because

A) if each firm plays its dominant strategy, joint profits are maximized. B) if each firm plays its dominant strategy, joint profits are not maximized. C) neither firm has a dominant strategy. D) the Nash equilibrium is not achieved.