Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat. Upon receiving a refund of $25,000 from the dealer, what will happen to the AVC of producing 10,000 fish?
a. increases by $25
b. increases by $2.50
c. does not change
d. decreases by $2.50
e. decreases by $25
C
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In the 2008-09 recession, the percentage of part-time workers due to economic reasons
A) rose to almost 18 percent. B) did not include teenagers. C) equalled the unemployment rate for those who are part-time workers due to non-economic reasons. D) decreased slightly over the period. E) doubled from 3 percent to 6 percent.
In the above figure, the long-run average cost curve exhibits constant returns to scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.
Refer to the Article Summary. ________ depend on increases in labor productivity
A) Decreases in the unemployment rate B) Advances in technology C) Increases in real GDP per capita D) Decreases in the inflation rate
In the market for both renewable and nonrenewable resources, the timing of the use of resources depends on:
a. the alternatives uses to which the resource is put. b. the market rate of interest. c. the availability of substitutes. d. the elasticity of demand for resources. e. government regulations.