Refer to the above figure. In order to stay open in the short run, this firm must
A) earn a positive profit.
B) receive a price equal to or greater than the minimum of its average variable cost.
C) receive a price exactly equal to its average total cost.
D) recover its fixed cost.
B
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Unions support minimum wage laws because an increase in the minimum wage
A) increases the supply of union labor. B) decreases the supply of union labor. C) increases the demand for union labor. D) decreases the demand for union labor.
In the above figure, the monopolist's profit-maximizing output level is
A) A. B) B. C) C. D) D.
Rapid economic growth has increased the economic well-being of U.S. citizens because
a. people are now earning higher incomes while goods and services are cheaper b. the dollar is worth now more than in the past c. the output of goods and services has risen faster than the population d. the population is now living and working longer e. the population has increased while production has decreased
Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PRwhere M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20, the demand function is
A. Qd = 680 - 9P. B. P = 690 - 9Qd. C. P = 680 - 9Qd. D. Qd = 690 - 9P. E. Qd = 800 - 19P.