Changes

6.  Earlier in this course we learned that someone who obtains a college degree earns, over the course of his life, about $500,000 more than someone who does not.  How can you explain this fact in terms of the advantages of "long run" costs over "short run" costs?

6.  Earlier in this course we learned that someone who obtains a college degree earns, over the course of his life, about $500,000 more than someone who does not.  How can you explain this fact in terms of the advantages of "long run" costs over "short run" costs?

7.  (challenging problem, try at least to earn partial credit)  Recall from the last Lecture that a firm increases its output as long as the marginal revenue exceeds the marginal cost.  Suppose that marginal revenue is greater than marginal cost, due to an increase in market price for the firm's widget.  The firm will hire more employees to produce more output until the value of its marginal product of labor equals _____________.

7.  (challenging problem, try at least to earn partial credit)  Recall from the last Lecture that a firm increases its output as long as its marginal revenue exceeds its marginal cost.  Suppose there is an increase in market price for the firm's widget, such that its marginal revenue is greater than its marginal cost.  The firm will hire more employees to produce more output until the value of its marginal product of labor equals _____________.

===Honors===

===Honors===