If a firm's fixed cost (overhead) increases, what happens to its profit-maximizing price and output?
Nothing. Whatever output was most profitable before the increase in fixed costs must still be most profitable because total profit is reduced by the same amount at each and every output level and marginal cost has not changed.
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Which of the following statements about private and social costs is TRUE?
A) Social costs include externalities. B) Private cost do not include externalities. C) Social costs are never smaller than private costs. D) All of the above.
The primary cause of frictional unemployment is
a. the low level of the current minimum wages. b. the lack of and cost of acquiring information about available job opportunities. c. a mismatch of the skills of unemployed workers with the skills needed for job openings. d. discouraged workers who quit looking for a job after extended periods of unsuccessful job search.