Which of the following is true of an intermediate good?
a. It is of no value to the seller.
b. It is of no value to the buyer.
c. It is purchased for household production.
d. It helps produce another good.
e. It is sold at a discounted price by firms.
Question 2
If the wage rate is fixed at a certain level, the:
a. total wage cost curve is horizontal.
b. total wage cost curve is a straight upward sloping line.
c. MP must be constant.
d. total wage cost curve will increase at an increasing rate.
e. total wage cost curve will increase at a decreasing rate.
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