Claude's Copper Clappers sells clappers for $40 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $39, average variable cost is $25, and average total cost is $45 . To improve his profit/loss situation, Claude should
a. increase output
b. reduce output but not to zero
c. maintain the present rate of output
d. shut down
e. raise the price
A
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Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
The goods produced by oligopolists are close substitutes
Indicate whether the statement is true or false
Refer to the data provided in Table 9.2 below to answer the question(s) that follow.
Table 9.2
Refer to Table 9.2. If the market price is $17 and the firm produces 4 units of output, then its profit would be
A. -$50. B. -$44. C. $0. D. $18.
Because resources are scarce, the opportunity cost of investment in capital is
A. infinite. B. forgone present consumption. C. zero. D. forgone future consumption.