Variable costs are
A) a production expense that does not vary with output.
B) a production expense that changes with the quantity of output produced.
C) equal to total cost divided by the units of output produced.
D) the amount by which a firm's cost changes if the firm produces one more unit of output.
B
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Studies on fast-food stores in Texas and New Jersey suggest that the federal minimum wage law
A. has huge ramifications on unemployment. B. does not have a discernable impact on unemployment. C. causes unemployment for high skilled workers. D. new entrants to the work force search for longer periods.
Which of the following will likely increase the demand for downtown parking in a large city?
A) Improved bus service to the downtown area B) Lower downtown parking fees C) More downtown parking lots D) More freeways leading to the downtown area E) Much higher gasoline prices
Which of the following is true in the short run?
What will be an ideal response?
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The amount of the tax paid by the consumer is
A. $2.25. B. $0. C. $1.00. D. $1.25.