In the above figure, the perfectly competitive firm's shutdown point is at a price of
A) $4 per unit.
B) $8 per unit.
C) $12 per unit.
D) $16 per unit.
B
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According to the Heckscher-Ohlin theory, comparative advantage is based on:
a. labor productivity differences. b. product life cycles. c. the availability of skilled resources. d. consumer tastes and preferences. e. the relative abundance of the factors of production.
The opportunity cost of an economic action is
a. the value of the next best alternative that must be sacrificed b. an issue in normative economic theory c. the expense for the resources used plus the firm's profit d. the out-of-pocket cost e. the option to pay a reduced fee for the action
The equilibrium quantity of labor decreases and the equilibrium wage increases when:
a. labor supply shifts to the left, if wages are flexible. b. labor demand shifts to the left, if wages are flexible. c. labor demand shifts to the right, if wages are flexible. d. labor supply shifts to the right, if wages are flexible.
Competition is best seen as a process.
Answer the following statement true (T) or false (F)