Which two lines on a cost curve diagram intersect at the shutdown point?
a. Average variable cost and marginal revenue
b. Marginal revenue and total cost
c. Average variable cost and total cost
d. Marginal revenue and marginal loss
a. Average variable cost and marginal revenue
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A firm that generates zero economic profit usually has
A) negative business profit. B) zero business profit. C) positive business profit. D) business profit equal to half the total revenue.
Refer to the above table. How do we know that this is not a competitive firm?
A) The marginal physical product decreases as the amount of labor hired increases. B) The marginal revenue changes as output changes. C) The marginal revenue product decreases as the amount of labor increases. D) Marginal physical product cannot be computed for competitive firms.
Which one of the following is a positive economic statement?
a. An increase in the minimum wage will reduce employment for teenagers. b. The minimum wage should be increased. c. Social justice will be served by increasing the minimum wage. d. Thoughtful people oppose an increase in the minimum wage.
What is the role of the "informativeness principle" in designing a compensation package for an individual in a corporate environment?
What will be an ideal response?