The unemployment caused by minimum wage would be larger if
A) both labor demand and labor supply are more elastic.
B) both labor demand and labor supply are more inelastic.
C) minimum wage is set equal to the equilibrium wage rate.
D) minimum wage is set below the equilibrium wage rate.
E) both labor demand and labor supply are perfectly inelastic.
A
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As frozen yogurt became popular, many different frozen yogurt shops popped up all over the country. This suggests that the
A. the quantity supplied of frozen yogurt decreased. B. supply of frozen yogurt decreased. C. supply of frozen yogurt increased. D. the quantity supplied of frozen yogurt increased.
Refer to Scenario 9.1. This scenario is an example of a ________ game
A) pure coordination B) chicken C) prisoner's dilemma D) battle of the sexes
The law of diminishing marginal utility states that total utility will decrease at an increasing rate as additional units of a commodity are consumed.
Answer the following statement true (T) or false (F)
A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . At what price would the firm consider shutting down in the long run?
a. $10 b. $25 c. $65 d. $70