For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?
a. the unemployment insurance premium that the firm pays to the state of Missouri that is calculated based on the number of worker-hours that the firm uses
b. the cost of the steel that is used in producing automobiles
c. the cost of the electricity of running the machines on the factory floor
d. All of the above are correct.
d
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If an entire industry relocates to a foreign country, the relocation leads to a higher rate of ________ unemployment
A) frictional B) structural C) structural and frictional D) cyclical E) structural and cyclical
An increase in labor productivity shifts the
A) labor demand curve rightward. B) labor demand curve leftward. C) labor supply curve rightward. D) labor supply curve leftward.
Compared to a single-price monopolist, a price-discriminating monopolist
A) produces more output. B) produces the same amount of output but charges a higher price. C) generates a larger deadweight loss. D) produces less output but charges a lower price.
Used cars sell for much less than new cars because
A) of imperfect competition in the automobile industry. B) buyers know much more about the quality of used cars than sellers do. C) sellers know much more about the quality of used cars than buyers do. D) physical depreciation of used cars is very high. E) of licensing arrangements by the government.