Linda's Autoplex performs oil changes on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of an oil change is $10 . The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour. What is the maximum hourly wage that Linda was willing to pay the last worker

In a market with positive externalities

A) the efficient level of production is less than what competition will obtain. B) the efficient level of production is equal to what competition will obtain. C) the efficient level of production is more than what competition will obtain. D) there cannot be an efficient level of production.

The new Keynesian sticky-price theory indicates that an increase in aggregate demand generates

A. rapid increases in both real Gross Domestic Product (GDP) and the price level. B. sluggish increases in both real Gross Domestic Product (GDP) and the price level. C. a speedy rise in the price level but a sluggish increase in real Gross Domestic Product (GDP). D. a speedy rise in real Gross Domestic Product (GDP) but a sluggish increase in the price level.