This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter summary carefully. Identify the correct statement: Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller quantity of output when the price of the produced good is lower. Olf there is diminishing marginal product of labor, the aggregate supply curve will slope downward. O lf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger quantity of output when the price of the produced good is higher. O When the representative consumer exhibits diminishing marginal utility in the consumption of produced goods, the aggregate demand curve will slope upward.
This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter summary carefully. Identify the correct statement: Olf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller quantity of output when the price of the produced good is lower. Olf there is diminishing marginal product of labor, the aggregate supply curve will slope downward. O lf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger quantity of output when the price of the produced good is higher. O When the representative consumer exhibits diminishing marginal utility in the consumption of produced goods, the aggregate demand curve will slope upward.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter
summary carefully. Identify the correct statement:
O lf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller
quantity of output when the price of the produced good is lower.
O f there is diminishing marginal product of labor, the aggregate supply curve will slope downward.
O lf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger
quantity of output when the price of the produced good is higher.
O When the representative consumer exhibits diminishing marginal utility in the consumption of produced
goods, the aggregate demand curve will slope upward.
Where is a Ramsey model consumer's optimal decision located on a diagram?
O At the point where an indifference curve crosses the PPC twice.
O At a point on an indifference curve that is just barely above the production function.
At a point on an indifference curve that is everywhere below the PPC.
O At any point where two indifference curves cross.
O At the point where an indifference curve is just barely touching the PPC.
Suppose your nominal wage is $15/hour and the price of gold is $39.65/gram. What is the relative
price of your time in terms of gold? Just report the number, not the labels. Round your answer to the
second decimal place.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55e523e7-e2e6-402b-ad67-45f8eb2bc62b%2F6fcd0556-695f-4ac6-b8d1-90d590f46690%2Fi46q9jf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter
summary carefully. Identify the correct statement:
O lf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a smaller
quantity of output when the price of the produced good is lower.
O f there is diminishing marginal product of labor, the aggregate supply curve will slope downward.
O lf there is diminishing marginal product of labor, a profit maximizing firm will wish to supply a larger
quantity of output when the price of the produced good is higher.
O When the representative consumer exhibits diminishing marginal utility in the consumption of produced
goods, the aggregate demand curve will slope upward.
Where is a Ramsey model consumer's optimal decision located on a diagram?
O At the point where an indifference curve crosses the PPC twice.
O At a point on an indifference curve that is just barely above the production function.
At a point on an indifference curve that is everywhere below the PPC.
O At any point where two indifference curves cross.
O At the point where an indifference curve is just barely touching the PPC.
Suppose your nominal wage is $15/hour and the price of gold is $39.65/gram. What is the relative
price of your time in terms of gold? Just report the number, not the labels. Round your answer to the
second decimal place.
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