When demand increases and the demand curve shifts to the right, equilibrium price ________ and equilibrium quantity ________.
A. increases; increases
B. increases; decreases
C. decreases; increases
D. decreases; decreases
Answer: A
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Suppose a single-price monopoly sells 3 units of a good at $20 per unit. If the monopoly sells 4 units, the total revenue increases to $72. What is the marginal revenue of the fourth unit?
A) $52 B) $18 C) $60 D) $12 E) $20
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, when 5 units are produced:
A. the firm is producing less than the profit-maximizing amount. B. profits are maximized. C. the firm is producing more than the profit-maximizing amount. D. profits are positive.
What is the effect of having a minimum wage that is nonbinding?
a. It allows wage equilibrium, but creates a quantity shortage.
b. It increased the labor shortage of workers who earn more than minimum wage.
c. It increases the labor surplus of workers who earn more than minimum wage.
d. It allows wage equilibrium and quantity equilibrium.
One area of labor issues that the labor side agreement to NAFTA does not open to foreign consultation or investigation is
A) the use of child labor. B) worker exposure to unsafe conditions. C) minimum wages. D) workers' rights to organize.