As long as an additional worker hired by a firm produces
A) more output than the real wage rate, the firm will hire that worker.
B) more output than the real wage rate, the firm will not hire that worker.
C) less output than the real wage rate, the firm will hire that worker.
D) some output, the firm will hire that worker.
E) more output than the nominal wage rate, the firm will hire that worker.
A
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The federal budget was in deficit from 1931 to 1939, except in the year 1937
Given this fact, how do you explain E. Cary Brown's statement, "Fiscal policy, then, seems to have been an unsuccessful recovery device in the 'thirties-not because it did not work, but because it was not tried."
The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. If the fixed cost of entry were to increase, which of the following would occur?
A) The incumbent chooses the Cournot level of output. B) The incumbent shuts down. C) The entry-deterring level of output rises. D) The entry-deterring level of output falls.
Answer the following statement true (T) or false (F)
1) Average fixed costs diminish continuously as output increases. 2) Economic profit is found by subtracting accounting costs from total revenue. 3) A firm's economic profit is usually higher than its accounting profit. 4) The law of diminishing returns explains why short-run marginal cost curves are upsloping. 5) The law of diminishing returns explains diseconomies of scale.
A shortage in the market for economics textbooks will ___________ the price of textbooks.
a) decrease b) initially not change but then decrease c) increase d) not change