If we assume that labor is the only variable input, the slope of the short-run ________ curve measures the marginal product of labor.

A catering company is producing at a point where its marginal costs are $25 and its fixed costs are $5000 . At the current price of $10 it is producing 50 meals. If the demand goes up, such that they can now charge $20 per meal, how much should the firm now produce?

a. 60 meals b. 70 meals c. 80 meals d. None, they should shut down

Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $625 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $500, then at that same point in time, loans for all banks amount to $2,625

a. True b. False Indicate whether the statement is true or false