The table above shows output and costs of Evan's Subs, a typical perfectly competitive firm in a local market for sandwiches. Evan's fixed cost is $9 per hour. The current market price of a sandwich is $6. What is Evan's shut-down price?
A) $6 per sandwich
B) $4 per sandwich
C) $3 per sandwich
D) $5 per sandwich
D
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Once households pay taxes, they have two options with their disposable income: consume or save
Indicate whether the statement is true or false
The basic difference between a public bureau and a market firm is that the bureau
a. has an incentive to maximize profits b. has no incentive to minimize costs c. managers do not attempt to maximize their self interest d. managers are more likely to be concerned with the public interest than their own self interest e. faces a budget constraint placed up it by the voters
Suppose, during the rapid expansion of NASCAR during the 1990s and 2000s, a racetrack owner kept expanding capacity to keep up with demand. Suppose further that fan interest in NASCAR diminished during the recession of 2007-2009. It would have been in that owner's best interest to reduce ticket prices sufficient to maintain a sellout.
Answer the following statement true (T) or false (F)
One of the sources of cyclical unemployment is _____
a. flexible wages b. sticky downward wages c. the constant movement of workers between jobs d. the fundamental changes in the nature of an economy