If another worker is hired with a marginal product greater than the previously hired worker, which of the following will be true?
A) Total costs will decrease.
B) Fixed costs will decrease.
C) Marginal cost will increase.
D) Marginal cost will decrease.
E) Average fixed costs will increase.
D
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What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic equilibrium?
What will be an ideal response?
Suppose a country abandons a no-trade policy in favor of a free-trade policy. If, as a result, the domestic price of pistachios decreases to equal the world price of pistachios, then
a. that country becomes an exporter of pistachios. b. that country has a comparative advantage in producing pistachios. c. at the world price, the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country. d. All of the above are correct.