If the market price in a competitive market is below the minimum of average variable cost, the firm will shut down
Indicate whether the statement is true or false
True . At this price, total fixed costs are smaller than the operating loss. It pays for the firm to shut down.
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As the baby boomers in America grow old, how would the market for health-care workers be affected?
A. Supply increases and wages decrease. B. Supply decreases and wages increase. C. Demand decreases and wages decrease. D. Demand increases and wages increase.
Which of the following is not a result of a U.S. tariff on foreign autos?
a. increase the price of imported autos b. increase the price of domestic autos c. decrease the quantity of foreign autos purchased by U.S. consumers d. decrease the quantity of domestic autos purchased by U.S. consumers
"If the United States enters a war with Canada, U.S. export prices will go up." This statement is an example of
A) a positive statement. B) an irrational statement. C) a normative statement. D) a realistic statement.
The profit maximizing combination of resources
A. is also the cost minimizing combination of resources. B. usually involves hiring more of some resources and less of other resources than the cost minimizing combination of resources. C. usually involves less of each input hired than the cost minimizing combination of resources. D. usually involves more of each input hired than the cost minimizing combination of resources.