If the marginal cost is less than average total cost, average total cost will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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Consider the labor market below. Suppose the government passes a minimum wage requiring employers to pay at least $8.00 per hour. 
After the imposition of the minimum wage, employment will equal ________ person-hours per day.
A. 4,000 B. 8,000 C. 6,000 D. 2,000
An investor has to choose between stocks A&B, each selling for $10 . Stock A, can either increase in price to $12, with a 50% probability or stay at $10 with a 50% probability. Stock B can either increase in price to $15 with a 50% probability or go down to $7 with a 50% probability. Which of the stocks would the investor choose
a. Stock A b. Stock B c. None of the stocks d. The investor would exit the market
Entrepreneurs
a. will prosper if they undertake projects that increase the value of the resources. b. are people who extend loans to other business decision makers. c. are managers who generally work for a salary because they are unwilling to take risks. d. will propser if they charge prices higher than their rivals.
State the law of supply and explain it.
What will be an ideal response?