A sandwich shop owner has the following information: P = MR = $4, ATC = $2, AVC = $1, MC = 4, and Q = 500 . From this, she can determine
a. her profits are not being maximized
b. she has earned zero economic profits
c. she has earned economic profits of $1,000
d. she has earned economic profits of $1,500
e. she should sell fewer sandwiches
C
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The size of an organization and the proportion of its workers in managerial roles is directly proportional
Indicate whether the statement is true or false
Which of the following is correct?
a. Any event that changes the supply or demand for labor must change the value of the marginal product. b. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor. c. An increase in the supply of labor increases both employment and wages. d. A decrease in the demand for labor decreases wages but increases employment.
Situation in which quantity demanded is greater than quantity supplied:
a. supply shock b. shortage c. excess supply d. disequilibrium e. search costs
Which of the following can be concluded from the relationships given below?(U.K. capital stock) < (rest of the world's capital stock)(U.K. labor supply) > (rest of the world's labor supply)
A. The rest of the world will export both commodities. B. The rest of the world will export labor-intensive goods. C. The United Kingdom is relatively labor-abundant compared to the rest of the world. D. The United Kingdom is relatively capital-abundant compared to the rest of the world.