As output rises from the shutdown point to the break-even point, the difference between AVC and ATC gets ___________.
Fill in the blank(s) with the appropriate word(s).
smaller
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Why is the demand for a perfectly competitive firm's good perfectly elastic even though the market demand is not?
What will be an ideal response?
Peter was recently hired as a salesman for a national consulting firm. His job involves spending a significant portion of his time out of the office visiting prospects and attending conferences. His firm is paying him a wage that is higher than the equilibrium wage, but he receives much of his income in quarterly bonuses based on how much he sells
a. The consulting firm is trying to prevent adverse selection with its compensation strategy. b. Peter has an incentive to go golfing with his buddies rather than conducting sales meetings. c. The consulting firm is responding to the moral hazard problem with its compensation strategy. d. Peter should quit this job and take a job where he gets paid an equilibrium wage more frequently.
According to predictions made by ________ in 1972, the collapse of the world economy will occur because of the depletion of nonrenewable resources.
A. the Club of Rome B. the European Union C. the World Bank D. the Fed
If a city decides to restrict the number of pizza parlors,
A) the price of pizza will increase. B) pizza parlors will make higher profits. C) total welfare will decrease. D) All of the above.