A firm is currently producing an output at which price equals the minimum point on the average variable cost curve. If wage rates increase, the firm will
A. not make any changes since its current rate of output is still minimizing its losses.
B. increase its rate of output to make up for the higher variable costs.
C. shut down since it would no longer be covering its variable costs.
D. decrease its rate of output to offset the higher variable costs.
Answer: C
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Based on this statement, the A) demand for pumpkins is elastic. B) demand for pumpkins is inelastic. C) demand for pumpkins is unit elastic. D) demand curve for pumpkins shifted rightward.
If the price of a normal good falls, what happens to the quantity demanded of that good?
What will be an ideal response?
Which of the following groups was Jefferson most trying to help in setting up the Land Ordinances?
(a) His friends, the land speculators (b) The urban proletariat (c) The small farmers (d) Fellow slave owners
For a given production possibilities frontier, which points are attainable?
A. Points inside the frontier B. Points outside the frontier C. Points on or outside the frontier D. Points on the frontier only E. Points on or inside the frontier