Which of the following is not a reason that paying efficiency wages may increase a firm's profit?
a. Efficiency wages increase worker health and therefore increase worker productivity.
b. Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
c. Efficiency wages decrease worker shirking and therefore increase worker productivity.
d. Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.
d
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If the exchange rate changes from 20 cents per franc to 18 cents per franc, the U.S. dollar has
a. appreciated, since its value has increased b. appreciated, since its value has declined c. depreciated, making French goods more expensive in U.S. dollars d. depreciated, since its value has declined e. depreciated, since its value has increased
A movement along a demand curve
a. is called a change in demand. b. is the result of a change in the price of the good. c. can be caused by many things. d. means the product is inelastic.
The rising part of a perfectly competitive firm’s ________ cost curve is the firm’s short run _________ curve.
A) average total; supply B) average variable; demand C) average fixed; demand D) marginal; supply
Which of the following statements is true?
A. TC = TFC ? TVC B. AVC = TC / Q C. TFC = TC ? TVC D. MC equals the change in ATC divided by the change in Q.