If the output of a firm is increased by one unit, the revenue addition is called

A firm wants to minimize the total cost of producing 100 tons of dynamite. The firm uses two factors of production, chemicals and labor. The combination of chemicals and labor that minimizes production costs will be found where

A) the marginal products of chemicals and labor are equal B) the ratio of the amount of chemicals used to the amount of labor used equals the ratio of the marginal product of chemicals to the marginal product of labor C) the ratio of the amount of chemicals used to the amount of labor used equals the ratio of the price of chemicals to the wage rate D) the production of an additional unit of dynamite costs the same regardless of whether chemicals or labor are used E) none of the above

To pay interest to those U.S. residents who hold government bonds, the government must tax other U.S. residents, implying that the more we redistribute income among residents to cover interest payments, the higher the average tax rate will have to be

a. True b. False