The evidence on how minimum wage laws affect the real world:
A. is mixed.
B. shows clearly that such price floors cause unemployment.
C. shows clearly that there is simply a transfer of surplus from employer to worker.
D. None of these statements is true.
A. is mixed.
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Refer to the scenario above. How will the demand for pens faced by the existing pen manufacturers in Eduland be affected if several firms exit the industry in the long run?
A) The demand curve by existing firms will become perfectly inelastic. B) The demand curve by existing firms will become perfectly elastic. C) The demand faced by existing firms will increase. D) The demand faced by existing firms will decrease.
Pollution occurs when lumber is produced. If the lumber market is unregulated, there would be
A) overproduction of lumber compared to the efficient amount. B) underproduction of lumber compared to the efficient amount. C) sometimes overproduction and sometimes underproduction of lumber compared to the efficient amount. D) an external benefit to producing lumber.
According to the figure shown, Nike:
A. has a dominant strategy to charge a high price.
B. does not have a dominant strategy.
C. will reach an optimum outcome by acting in its own self-interest.
D. has a dominant strategy to charge a low price.
Process innovation causes an upward shift in a firm's total product curve and:
A. a decrease in its average product. B. a downward shift in its average total cost curve. C. an upward shift in its average total cost curve. D. an upward shift in its marginal revenue curve.