Doug's Dog Grooming is a perfectly competitive firm charging 5 ...

[Zoey63294]

Doug's Dog Grooming is a perfectly competitive firm charging 5 per dog grooming.
 
  Doug's Dog Grooming has the total and marginal product of labor schedules in the above table and can hire workers from a perfectly competitive labor market for 15 per hour. What is the value of marginal product of the third worker? A) 5
  B) 25
  C) 15
  D) 375

Question 2

If the Fed wants to lower the U.S. exchange rate, what action should it take in the foreign exchange market? Why does the action lower the exchange rate?
 
  What will be an ideal response?

[ebonylittles]

Answer to Question 1

B

Answer to Question 2

To lower the exchange rate, the Fed should sell dollars and buy foreign currency. By selling dollars, the Fed increases the supply of dollars, which lowers the U.S. exchange rate.

[Zoey63294]

YES! Correct, THANKS for helping me on my review

[kthug]

Thanks for the timely response, appreciate it