To explore the rationale for specialization, economists use the
A) real-nominal principle. B) principle of opportunity cost.
C) marginal principle. D) principle of marginal exchange.
B
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You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day
The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $30. Should the firm continue to operate at a loss? Carefully explain your answer.
According to the graph shown, producer surplus is:
A. the area under the demand curve and above the market price.
B. the area under the supply curve and above the price.
C. the area above the supply curve and below the price.
D. the area above the demand curve and below the price.
Union membership in the United States has remained relatively steady since 1955
a. True b. False
The reason that the "fast-casual" restaurant market is monopolistically competitive rather than perfectly competitive is because
A) barriers to entry are very low. B) there are many firms in the market. C) products are differentiated. D) entry into the market is blocked.