Suppose Al, Betty, and Carl own the only fishing companies in your village. Suppose the market price today is $10 per fish. Suppose Al catches 4,000 fish with an average total cost of $7.50, Betty catches 6,000 fish with an average total cost of $6, and Carl catches 10,000 fish with an average total cost of $5 . If everyone is a profit maximizer, what is Betty's marginal cost?

New Keynesian economists have examined whether real-world prices are, in fact, sticky. In one study of 38 magazines, Stephen Cecchetti found

a. that price rigidity was nonexistent with respect to magazines at newsstands. b. considerable rigidity with respect to the newsstand prices of magazines. c. that most of the 38 magazines in the study had price changes at least once a year. d. that the Readers Digest price was changed 15 times between 1950 and 1980.

Explain how the current U.S. tax system levies taxes on capital gains and earned interest. What does this mean for the costs of inflation?

What will be an ideal response?