Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, the firm's profit is:

What is the effect of immigration in the long run?

a. Output will increase. b. Factor prices will increase. c. There will be no change in factor prices. d. There will be an increase in output but no change in factor prices.

Which of the following would not be considered an automatic stabilizer?

A) rising corporate income tax revenues due to an expanding economy B) increasing food stamp payments due to more people becoming unemployed during a recession C) legislation increasing funding for job retraining passed during a recession D) decreasing unemployment insurance payments due to increased employment during an expansion