The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. Average variable cost (AVC) is lowest when output is equal to
A) 1 barrel of pickles.
B) 2 barrels of pickles.
C) 3 barrels of pickles.
D) 4 barrels of pickles.
C
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A nation can maximize the net benefits from immigration by:
A. Contracting immigration until the extra welfare cost for taxpayers is zero B. Expanding immigration until its marginal benefits equal its marginal costs C. Expanding immigration because it benefits society with a greater supply of products and increased demand for them D. Contracting immigration because the benefits are minor and it reduces the wage rates of domestic workers
All of the following shift the LAS curve EXCEPT
A) a change in the capital stock. B) an increase in the money wage rate. C) an increase in the stock of human capital. D) technological progress.
A cost that involves spending money is
A) an explicit cost. B) an implicit cost. C) an opportunity cost. D) an indirect cost.
Which of the following statements about the price elasticity of demand is correct?
a. The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases. b. Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes. c. Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y. d. All of the above are correct.