The table below shows cost data for a firm that is selling in a purely competitive market.OutputAFCAVCATCMC1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360Refer to the above table. If the market price for the firm's product is $70, the competitive firm will:
A. produce one unit.
B. produce two units.
C. produce three units.
D. shut down.
Answer: C
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Absent government interference, the wage rate for labor in a competitive market is established
A) solely by the firm's demand for labor. B) solely by the market supply of labor. C) by both the demand for and supply of labor at each individual firm. D) by the the market supply and market demand for labor.
Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is:
a. the natural rate of unemployment. b. full employment. c. cyclical unemployment. d. frictional unemployment. e. structural unemployment.
If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do), then states would maximize their profits on plate sales at the point on a linear demand curve where
a. demand is inelastic. b. demand is elastic. c. demand is unit elastic. d. the demand curve crosses the horizontal axis.
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 D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.