A firm that would experience higher average total cost by increasing production is operating with excess capacity

The Social Security Administration estimates that the Social Security Trust Fund will ________ and that the Medicare Trust Fund will ________

A) become fully funded by 2036; become fully funded by 2024 B) continue to get smaller as the number of retirees increases; start to grow once funds from Obamacare are funneled to the program C) grow slowly as more workers retire; decline slowly as medical costs rise D) run out of funds in about 20 years; run out of funds in about 10 years

Workers determine the supply of labor, and firms determine the demand for labor

a. True b. False Indicate whether the statement is true or false