Refer to the figure above. If a price control is imposed at $8, what is the new consumer surplus in the market?
A) $115
B) $125
C) $130
D) $175
C
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A firm in a competitive input market can
A) hire workers at the going wage. B) hire additional workers only by raising wages. C) hire additional workers at lower wages because those who are still unemployed are anxious to work. D) hire additional workers only after a long search process.
The annual cost of producing the entire output of final goods and services in an economy is
A. equal to the quantity of total output produced. B. equal to total income. C. greater than the total income of households in the economy. D. equal to the total income of households in the economy only if profits are zero.
One argument for cyclical unemployment is
a. high labor force participation. b. a downturn in the economy. c. sticky downward wages. d. an upturn in the economy.
In the above figure, what is the profit-maximizing output and price?
A. 12, $10 B. 10, $8 C. 10, $10 D. 8, $7