A highly-paid research scientist works 12 hours a day, while a common laborer works only 5 hours a day. Offer a likely explanation, using the concept of opportunity cost
The wage (opportunity cost of leisure) is higher for the research scientist than for the common laborer, so the scientist takes less leisure than does the laborer.
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Which of the following formulas is most representative of a negative income tax proposal?
a. Taxes Owed = (1/4 of Income) $2 b. Taxes Owed = (1/2 of Income) 3/4 c. Taxes Owed = (1/2 of Income) + $10,000 d. Taxes Owed = (1/3 of Income) - $10,000
Doggy Treats is selling dog treats in a purely competitive market. Its output is 800 treats, which it sells for $10 a treat. At the 800-treat level of output, the marginal cost is $11, the average variable cost is $9.00, and the average variable cost is
$8.00. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine that optimal level of output? What will be an ideal response?