QUESTION 61 If the firm has a kinked demand curve O all firms have the same output firms will only compete based on price there is price volatility there is price stability raising or lowering prices will be matched by competitors QUESTION 62 If the Marginal Product of capital is 6 and the Marginal Product of labor is 3: the prices of capital and labor are $10 and $2 respectively. What should the manager do? O Increase output O Substitute in more labor for less capital O Substitute in more capital for less labor O Pay workers less QUESTION 63 Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell t. The market demand curve is linear and is given as P-30-Q. The marginal cost to produce this new drink is $3. What is the monopoly price of this new drink 00 0:53 O $13.50 O $16.50 QUESTION 64 "Suppose that the prices of good A and good l were to suddenly double. If good A is plotted along the horizontal axis" O the budget line will become steeper O the budget line will become flatter O the slope of the budget line will not change O the slope of the budget line will change, but in an indeterminate way
