Author Question: If ten cases of pretzels are sold at a price of 8 each and the marginal product of the last unit of ... (Read 29 times)

tsand2 · **on:** Jun 30, 2018

If ten cases of pretzels are sold at a price of 8 each and the marginal product of the last unit of labor is 5, the firm's total revenue is
a. 80
b. 30
c. 50
d. 6
e. 150

Question 2

The Coase solution to the problem of externalities
a. applies in every situation where externalities are present
b. only applies to activities that generate positive externalities
c. only works under perfect competition
d. only works when bargaining costs are low
e. can lead to an increase in the common pool problem