Tony is the owner of Tony's Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?
a. $200
b. $8
c. $5
d. There is insufficient information available to answer this question.
c
Economics
You might also like to view...
According to the U.S. Supreme Court's 1945 ruling on Alcoa,
a. all monopolies are illegal b. price fixing agreements are illegal under the rule of reason c. small firms can be found to be in violation of the Sherman Antitrust Act d. "mere size is no offense." e. possession of market power is sufficient for a firm to be found in violation of the Sherman Antitrust Act
Economics
A cartel is:
A. A form of covert collusion B. Legal in the United States C. Always successful in raising profits D. A formal agreement among firms to collude
Economics