Joe's bell pepper stand is a competitive firm. Joe sells 90 bell peppers a day, and the market price for bell peppers is $5. Below is Joe's cost curves (price is measured in dollars and quantity is measured in number of peppers).
What can you say about Joe's short-run decision regarding shutdown?
a. The market price is too low, so Joe should shut down
b. The market price is too high, so Joe should shut down
c. The market price is high enough to cove relevant costs, so Joe should operate
d. At the market price the Joe will earn positive profit, so he should operate
Answer: c. The market price is high enough to cove relevant costs, so Joe should operate.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
What is job search and what is the relationship between job search and unemployment? What factors can affect the amount of job search? Briefly discuss the effect of each factor
What will be an ideal response?
After getting an A on your economics exam, you decide to go to your favorite Mexican restaurant to celebrate. You are having trouble deciding whether to order the chipotle chicken chimichanga or the cilantro seafood enchiladas
Use the rule of equal marginal utility per dollar to determine which one to purchase: (a) the chimichanga for $8 which gives you 120 units of utility, or (b) the enchiladas for $15 which gives you 195 units of utility?
Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:
A) a decrease in both price and the profit-maximizing quantity of output. B) a decrease in price and increase in the profit-maximizing quantity of output. C) an increase in both price and the profit-maximizing quantity of output. D) an increase in price and decrease in the profit-maximizing quantity of output.