Which of the following would most likely prevent the firm from shutting down?
a. the AVC curve moving further above P
b. the ATC curve moving partly below P
c. the ATC curve moving further above P
d. the AVC curve moving completely below P
d. the AVC curve moving completely below P
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Which of the following statements is true?
A) A higher wage can raise profits if productivity is directly proportional to wages. B) A higher wage can reduce the quantity supplied of labor. C) A higher wage can increase the quantity demanded of labor. D) A higher wage can raise profits if productivity of workers is fixed.
If the government were to restrict consumption to the efficient level in a market where a negative externality is present, the market outcome:
A. would not be efficient. B. would then be efficient. C. would be equitable. D. None of these statements is necessarily true.
For a nation to have sustained economic growth, it must ______.
a. decrease its reliance on natural resources b. decrease its rate of population growth c. increase the output per average worker d. increase its exports
If the current mix of output is at point A and the optimal mix of output is at point D, does a market failure exist?
