Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day
If the rental rate of capital rises to $50 per machine a day, Sandra's ________ curve shifts upward. A) average variable cost
B) total variable cost
C) average fixed cost
D) marginal cost
C
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In the figure above, the DLF curve is the demand for loanable funds curve and the PDLF curve is the private demand for loanable funds curve
If there is no Ricardo-Barro effect, the figure shows the situation in which the government has a ________ so that the equilibrium real interest rate is ________ and the equilibrium quantity of investment is ________. A) budget deficit; 6 percent; $1.5 trillion B) balanced budget; 6 percent; $1.5 trillion C) budget surplus; 4 percent; $1 trillion D) budget surplus; 6 percent; $1.5 trillion E) budget deficit; 4 percent; $1 trillion
What is the difference between a marginal tax rate and an average tax rate? Which is more important in determining the impact of the tax system on economic behavior?
What will be an ideal response?