According to the life-cycle hypothesis, if the average person expects to live another 48 years, the short-run MPC out of unexpected changes in income is

Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is $3 and the market wage rate is $6, the marginal product of the last unit of labor hired by the firm must be:

A) 0.5 units. B) 2 units. C) 9 units. D) 18 units.

If marginal cost is less than average variable cost and output increases, average total cost ________ and average variable cost ________

A) increases; increases B) decreases; decreases C) decreases; increases D) increases; decreases