Refer to the figure above. What is the market-wide consumer surplus when the market price of wine is $18?
A) $36,000
B) $3,000
C) $45,000
D) $210,000
B
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Nonunion labor is a substitute for union labor, so when the minimum wage ________, the demand for union labor ________
A) rises; decreases B) decreases; increases C) decreases; decreases D) rises; increases E) rises; remains the same
Which of the following statements best summarizes the law of diminishing marginal returns?
A) In the short run, as more labor is hired, output diminishes. B) In the short run, as more labor is hired, output increases at a diminishing rate. C) In the short run, the amount of labor a firm will hire diminishes as output increases. D) As more labor is hired, the length of time that defines the short run diminishes.
According to the above figure, the maximum profit the monopolist can receive is
A) 0. B) $1,500 per day. C) $9,000 per day. D) $7,500 per day.
If a manufacturer has a U-shaped long-run average total cost curve, then
a. it cannot correctly calculate the position of its fixed cost curve b. there is an output level such that producing one more unit increases average total cost c. there must be a large range of production over which the firm experiences constant returns to scale d. no two quantities of output can have the same average total cost e. there does not exist an output level such that producing one more unit decreases average total cost