If a 10 percent increase in price leads to a 20 percent increase in the quantity supplied, then the elasticity of supply is 0.5

A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to produce in the short run?

A) Yes, it should continue to produce because its price exceeds its average fixed cost. B) No, it should shut down because it is making a loss. C) Yes, it should continue to produce because it is minimizing its loss. D) There is insufficient information to answer the question.

Which of the following is correct? a. An increase in the quantity of labor always leads to economic growth

b. Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. c. A decrease in the productivity of labor leads to economic growth. d. Japan and Hong Kong are rich in natural resources.