An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is:
a. greater than 1
b. less than 1 but more than zero.
c. negative.
d. exactly equal to zero.
e. exactly equal to one.
a
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Tom and Mary own a perfectly competitive tomato farm. They can hire different numbers of college students to help plant, cultivate, and harvest the tomatoes. The above table gives their marginal product schedule
a) If the price of a pound of tomatoes is $2 a pound, complete the first value of marginal product column in the table. If Tom and Mary must pay their workers $10 an hour, how many workers do they hire? b) If the price of a pound of tomatoes falls to $1 a pound, complete the second value of marginal product column in the table. If Tom and Mary still must pay their workers $10 an hour, how many workers do they hire? c) When the price of a pound of tomatoes falls, what happens to Tom and Mary's demand for labor curve?
Complete the following short-run cost table using the information provided
