Joe manages a company that produces lawn mowers. Joe knows that the value of marginal product
A) decreases as he hires more labor to produce lawn mowers.
B) does not change as he sells more lawn mowers.
C) increases as he hires more labor to produce lawn mowers.
D) increases as he sells more lawn mowers.
Question 2
A good has a perfectly inelastic supply and a downward sloping demand curve. Imposing a sales tax of 1 per unit on the sellers of the good
A) raises the price paid by demanders by more than 1.00.
B) raises the price paid by demanders by 1.00.
C) raises the price paid by demanders by less than 1.00.
D) does not change the price paid by demanders.
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Lawn tennis