GCU ECN601 Exam 1 Latest/GCU ECN601 Exam 1 Latest/GCU ECN601 Exam 1 Latest

  

Question 

1. An example of a price floor is:

A. Rent controls in New York City
B. Minimum wages
C. Agricultural Price Supports
D. Both b and c

2. Use the table provided to answer the following question. If hiring the fourth worker increases total product by 50 units and the price of each unit is $15:

   

No   of workers

Total   cost

 

0

1000

 

1

2200

 

2

3200

 

3

4000

 

4

4600

 

5

5000

 

6

5200

 

7

5600

 

8

6200

 

9

7000

 

10

8000

A. the firm should hire the 4th worker as MR>MC