Suppose that at the current level of output, price = $100, MC = $100, AVC = $80, and ATC = $90. Which of the following is TRUE?
A) The firm should decrease output.
B) The firm should shut down.
C) The firm should increase output.
D) The firm should maintain the current level of output.
Answer: D
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The United States experienced a depression in which of the following decades?
A. the 1920s B. the 1940s C. the 1950s D. the 1970s
A common example of indexing in the United States is: a. annual bonuses to workers
b. wage increases with seniority. c. 30-year fixed-rate mortgage loans. d. escalator clauses tied to the CPI in wage agreements.
Any point inside a production possibilities curve indicates:
A) unemployment and/or inefficiency. B) that the law of increasing opportunity costs is no longer valid. C) that society doesn't want more of either good. D) that economic growth is no longer possible.
What is the added worker effect?
A. A secondary worker enters the labor force when the wage rate is high. B. A secondary worker enters the labor force when he or she no longer must allocate time to household production. C. A secondary worker enters the labor force when his or her consumption of goods exceeds his or her nonlabor income. D. A secondary worker enters the labor force when his or her household productivity increases. E. A secondary worker enters the labor force when the main worker in the household has lost his or her job or has experienced a wage cut.