What happens to the MPP of labor when the price of the good produced increases?
a. It increases proportionally with the price.
b. It decreases proportionally with the price.
c. Nothing happens because it stays the same.
d. It falls because quantity demanded falls.
e. It rises because quantity demanded falls.
C
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A network externality refers to a situation where:
A) the value of a product increases as more consumers start to use it. B) firms collude to sell products at a price higher than the equilibrium market price. C) a firm that has control over key resources auctions the resources off to other firms. D) the government interferes to prevent the concentration of market power in the hands of a few firms.
Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?
A) 30.7 percent B) 6.7 percent C) 5.4 percent D) 5.1 percent