Author Question: Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of 10, 100 workers would be ... (Read 60 times)

Engineer · **on:** Jun 30, 2018

Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of 10, 100 workers would be willing to work for her. Similarly, at a wage of 12, 200 workers would be willing to work. Her marginal factor cost is:
a. 10.
b. 14.
c. 120.
d. 140.
e. 240.

Question 2

If real gross domestic product (GDP) in a particular year is 5,000 trillion and nominal gross domestic product (GDP) in that same year is 4,000 trillion, then the:
a. consumer price index (CPI) is 125.
b. economic activity has decreased by 20 percent.
c. GDP price index is 125.
d. GDP price index is 80.
e. economy has grown by 20 percent.