The marginal product of labor equals the value of marginal product of labor multiplied by the price of the output produced

Assumptions that output is fixed and factor prices have adjusted to reach the level of full employment are:

a. useful for long-run analysis. b. necessary for short-run analysis. c. unrealistic to the extent that economists should not make such assumptions. d. always true and therefore useful both in the long run and short run.

In 1906, the Hepburn Act

(a) Required the federal government to set "fair rates" for customers regardless of geographical location. (b) Required the federal government to set rates that promised a positive rate of return to railroads. (c) Granted the power to set maximum rates in the railroad industry to the federal government. (d) Granted the power to set maximum rates in the railroad industry to the leading railroad tycoons.