Suppose MPL = 20 and MPK = 40 and the rental rate on capital is $10 . If the level of production is currently efficient, the wage rate must be

Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then in the short run

a) the price level will fall, and real GDP will fall. b) real GDP will fall and the price level might rise, fall, or stay the same. c) real GDP will rise and the price level might rise, fall, or stay the same. d) the price level will fall, and real GDP might rise, fall, or stay the same. e) the price level will rise, and real GDP might rise, fall, or stay the same.

Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 ? 33Q and the marginal cost of providing wireless services to the area is $1 per minute. Compute consumer surplus when Verizon Wireless charges an optimal two-part price.

A. $0 B. $148.50 C. $74.25 D. There is insufficient information to compute consumer surplus.