Refer to Figure 8.6, which shows just three of a firm's various possible short-run average cost curves. Suppose the firm is currently producing 160 units at an average cost of $90 per unit. Which of the following statements is true?
A. The firm could reduce its short-run average cost by producing more output.
B. The firm could reduce its short-run average cost by producing less output.
C. The firm is producing the level of output that minimizes short-run average cost.
D. The firm is producing its output at the lowest possible long-run average cost.
B. The firm could reduce its short-run average cost by producing less output.
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Price controls:
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Money illusion occurs
A. when we disregard inflation adjustments for dollar values. B. when prices decrease. C. when money disappears. D. at a magic show.
Exhibit 5-11 GDP data (billions of dollars) Personal consumption expenditures$4,750 Exports810 Government spending1,400 Social Security taxes600 Depreciation450 Indirect business taxes550 Imports850 Gross private domestic investment900 Corporate income taxes200 Personal taxes800 Corporate profits50 Transfer payments700 In Exhibit 5-11, and using the expenditures approach, gross domestic product (GDP) equals:
A. $7,010 billion. B. $10,360 billion. C. $9,660 billion. D. $7,860 billion.
Which of the following will increase labor? productivity?
What will be an ideal response?