Exhibit 8-12 Marginal revenue and cost per unit curves
As shown in Exhibit 8-12, the firm will shut down in the short-run at a price below:
A. OA.
B. OB.
C. OC.
D. OD.
Answer: A
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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is above point K, the next year's PPF would
A) shift inward along the vertical axis. B) shift inward along the horizontal axis. C) shift outward along the horizontal axis farther than the new PPF shown in the figure. D) shift outward along the vertical axis, not along the horizontal axis. E) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had which of the following consistent results?
A) a decline in real wages due to an upward shift of the production function B) an increase in the rental price of capital along with a healthy stock market response C) a decline in real wages due to a downward shift of the MPL curve D) an increase in the rental price of capital due to an upward shift of the production function E) none of the above
If retailers have a resale price maintenance agreement with a manufacturer to sell the product at a minimum price of $100, this means that brick and mortar stores ________ charge a price below $100 and online retailers ________ charge a price below $100.
A) can; can B) cannot; can C) cannot; cannot D) can; cannot
Out of approximately 150 million workers in the U.S. economy, what percentage of the total are paid the minimum wage?
a. Less than 2% b. Approximately 5% c. Approximately 8% d. More than 10%