In Figure 45.2, at the perfectly competitive equilibrium, the wage will be Figure 45.2 

Luke has lent his friend Mitch some money. However he underestimated the rate of inflation when they agreed to a repayment and interest schedule. Mitch will benefit from the inflation

a. True b. False Indicate whether the statement is true or false

For a hotdog vendor, the hotdog buns represents his

A) fixed input. B) variable input. C) sunk cost. D) none of the above.