Consider a firm that produces 500,00 . units per year. The firm's fixed costs are $100,000 . marginal costs are $250 and the price per unit is $400 . In the long-run, how low can price go before it is profitable to shut down?
a. $150
b. $250
c. $250.20
d. $400
c
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The above figure shows the market for labor. The employer is a monopsony. If the workers are unionized, the wage will be
A) $5 per hour. B) between $5 per hour and $15 per hour. C) above $15 per hour. D) less than if the workers were not unionized.
Which of the following would not be considered a fixed cost for a law firm?
a. paper for the photocopy machine b. property taxes c. insurance premiums d. license fees e. interest on loans
In a prisoner's dilemma situation where firms are setting prices, the dominant strategy is always to charge the price that leads to maximum profits for all firms
a. True b. False Indicate whether the statement is true or false
Which of the following pholitical philosophies would support redistribution of income that makes society fully egalitarian?
a. Liberals, because they believe in the maximin criterion. b. Libertarians, because they believe in evaluating the process by which economic outcomes arise. c. Utilitarians, because they believe in diminishing marginal utility. d. None of the above would support completely egalitarian redistribution of income.