For this question, assume that the aggregate production function is represented by Y = A. Which of the following represents the marginal cost of producing an additional unit of output?

Refer to Figure 8.5. If the actual wage in this economy is represented by w2, employment in this economy is represented by

A) L1. B) L2. C) L3. D) 0.

Allen Steel Company is considering whether to build a new mill. If the interest rate rises,

a. the present value of the returns from the mill will fall, so Allen will be less likely to build the mill. b. the present value of the returns from the mill will fall, so Allen will be more likely to build the mill. c. the present value of the returns from the mill will rise, so Allen will be less likely to build the mill. d. the present value of the returns from the mill will rise, so Allen will be more likely to build the mill.