Refer to the information provided in Figure 9.6 below to answer the question(s) that follow. 
Figure 9.6Refer to Figure 9.6. Assume this firm is in a constant-cost industry. For this firm to ________, the firm must be producing q3 units of output.
A. need to shut down
B. be in long-run equilibrium
C. be experiencing diseconomies of scale
D. need to cut back on production to lower average costs
Answer: B
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In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per sweater for Mohammed is
a. $240 b. 240 cookies c. 48 sweaters d. 1/48 of a cookie e. 48 cookies
Expectations that disposable income will increase in the future will _____
a. shift the current consumption function upward b. shift the current consumption function downward c. result in an upward movement along the current consumption function d. make the current consumption function flatter e. make the current consumption function steeper
If one country has an absolute advantage in every commodity, there is no reason for it to trade
a. True b. False Indicate whether the statement is true or false
Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable
a. True b. False Indicate whether the statement is true or false