Refer to Figure 9.3. At what quantity is the firm maximizing profit?
A. 0
B. Q1
C. Q2
D. Q3
C. Q2
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A demand curve is also a willingness-and-ability-to-pay curve
Indicate whether the statement is true or false
There is discrimination in the labor market on the planet of Yerk between two groups of people, the Mirks and the Morks
If the discrimination is against the Mirks, then the VMP curve for Mirks is ________ the VMP curve for Morks, and the Mirks receive ________ than the Morks. A) to the left of; the same wage rate, but fewer are employed B) to the right of; the same wage rate, but fewer are employed C) to the left of; a lower wage rate D) to the right of; a lower wage rate
When economists David Gould, G.L. Woodbridge, and Roy Ruffin examined the data on the relationship between increases in imports and the rate of unemployment, they concluded that
A) free trade leads to increased unemployment. B) there is not a casual link between increases in imports and the rate of unemployment. C) increases in imports always precede increases in unemployment by a period of 6 months to one year. D) increases in unemployment always precede increases in imports by a period of 6 months to one year.
A firm will shut down if
a. it earns too little economic profit b. there are a large number of buyers and sellers c. it suffers an economic loss d. there is a change in tastes and preferences e. price is everywhere less than average variable cost