How many units of labor will this firm hire in maximizing its profits?
What will be an ideal response?
The firm will hire 51 units of labor. The marginal cost for 51 workers is $57 ($357 ? $300). The marginal revenue product of 51 workers is $59 ($958 ? $899).
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Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate falls, then
a. both the nominal and the real interest rate fall. b. neither the nominal nor the real interest rate fall. c. the nominal interest rate falls, but the real interest rate does not. d. the real interest rate falls, but the nominal interest rate does not.
Which of the following would cause an increase in the supply of peanut butter?
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements) B) an increase in the price of peanut butter C) an increase the price of a product that producers sell instead of peanut butter D) an increase in the number of firms that produce peanut butter