The introduction of ATM machines allowed financial institutions to handle more transactions at less cost, thus decreasing the demand for human tellers. The best explanation for this change is that the:
A. Marginal product of ATMs was equal to its price
B. Marginal product of human tellers was equal to its price
C. Marginal product of human tellers divided by its price was greater than that for ATMs
D. Marginal product of ATMs divided by its price was greater than that for human tellers
D. Marginal product of ATMs divided by its price was greater than that for human tellers
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According to economists Robert Lucas and Thomas Sargent, when are the gains to accurately forecasting inflation highest?
A) when inflation is high and stable B) when inflation is moderate but stable C) when inflation is high and unstable D) when inflation is low
In the short run, if a firm operates, it earns a profit of $500. The fixed costs of the firm are $100. This firm has a producer surplus of
A) $500. B) $100. C) $400. D) $600.