Complete the following table by finding the average and marginal product. At what input-output level will average variable cost begin to rise? Explain
With equal pay for each worker, average variable cost will begin to rise for the third worker’s output because that is the point where diminishing returns begin.
Economics
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The slope of the consumption function is equal to: a. the MPC
b. the MPS. c. 1/(1 - MPC). d. MPC - MPS.
Economics
Suppose planting flowering shrubs creates a positive externality equal to $7 per shrub. Further suppose that the local government offers a $7 per-shrub subsidy to planters. The number of shrubs that are planted is then
a. less than the socially optimal quantity. b. greater than the socially optimal quantity. c. equal to the socially optimal quantity. d. There is not enough information to answer the question.
Economics