The figure above represents the relationship between output and cost in an industry with an external cost. Which line represents the marginal private cost (MC) curve?

Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause

A) a reduction in the rate of growth in the long run. B) a reduction in output per worker. C) a reduction in consumption per worker. D) all of the above E) none of the above

Refer to Table 3.2, which shows some costs and benefits of having your car repaired. Suppose you use your car to deliver pizzas, for which you earn $10 per hour. If your mechanic lowers the amount she charges by $50, what happens to your best choice of hours to spend on car repairs

A. It increases by 1 hour.

B. It decreases by 1 hour.

C. It doesn't change.

D. It decreases by 2 hours.