A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5 . The firm can sell the 100th unit for $5 . The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses)

Which of the following statements correctly identifies a difference between labor and capital?

A) Capital can be rented or owned by a firm, but labor cannot be owned. B) Labor can be rented or owned by a firm, but capital cannot be owned. C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas capital is hired until a point where the average product of capital equals the price of capital. D) Labor is hired until a point where the average product of labor equals the price of labor, whereas capital is hired until a point where the marginal product of capital equals the price of capital.

The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is

a. to increase equilibrium price and quantity b. to decrease equilibrium price and quantity c. to increase equilibrium price and decrease equilibrium quantity d. to increase equilibrium quantity and decrease equilibrium price e. that equilibrium price and quantity remain constant