The above figure shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below
A) $5.
B) $10.
C) $11.
D) $15.
A
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If a price floor is set above the equilibrium price,
A. quantity demanded will equal quantity supplied. B. there will be a surplus. C. the floor will be ineffective. D. there will be a shortage.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.
Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. Refer to Scenario 9.3. Economic profit per week is
A. ?$400. B. $0. C. $600. D. $900.
Social security taxes in the U.S. tend to be ________
A) proportional B) progressive C) regressive D) negative