Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $25 . What do you advise this firm to do?
a. Increase output.
b. Decrease output.
c. Shut down operations.
d. Stay at the current output; the firm is earning a profit of $1,400.
e. Stay at the current output; the firm is losing $1,400.
c
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A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. How many workers should the farmer hire?
A. 1 B. 2 C. 3 D. 4
The demand for a product is inelastic whenever
A. the percentage change in quantity demanded is less than the percentage change in price. B. the percentage change in quantity demanded is higher than the percentage changes in price. C. the percentage change in quantity demanded is equal to the percentage changes in price. D. the quantity demanded changes by zero when price changes.
The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that:
A) good A is a normal good. B) good B is an inferior good. C) goods A and B are substitutes. D) goods A and B are complements. E) none of the above
Individuals who would like a full-time job but are working only part-time are known as
a. partially unemployed. b. involuntary part-time workers. c. freelancers. d. flexible workers. e. temporary labor force.