A demand function is inelastic if the absolute value of its elasticity is less than one.

The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. If 95 units are produced, the average total cost is

A) $6.31. B) $17.45. C) $26.32. D) $32.63.

Which of the following is an unintended consequence of welfare?

a. A low marginal tax rate on earned income for welfare recipients. b. A reduced incentive to leave welfare if more benefits are lost when income begins to be earned. c. A lower probability that children of families on welfare will themselves receive welfare. d. A welfare recipient becomes more productive, increasing the expected wage.