If the price is less that the firm’s AVC, the firm’s output
A. is determined by the relationship between MC and AVC.
B. will drop to zero.
C. will change to where MC = ATC.
D. will increase to where P = AC.
Answer: B
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Which of the following is a reason for the change in labor union membership since the 1970s?
a. Workers have moved out of manufacturing and into the service sector. b. The government has increased regulation of heavily unionized industries. c. Global competition has fallen and led to more “home-grown” manufacturing. d. Newer models include project-based learning, maker spaces, and coworking.
The introduction of new technologies to production is ________ source of productivity improvement.
A. the only B. the least important C. no longer a D. the most important
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
What is the marginal product of the third hour of? labor?
The following is a hypothetical short-run production function:
Hours of Total Marginal
Labor Output Product
0 ___ ___
1 100 100
2 ___ 80
3 240 ___
A. 60
B. 80
C. 100
D. 240