A shoe manufacturer is producing at a point where its marginal costs are $5 and its fixed costs are $5000 . At the current price of $10 it is producing 500 pairs. If the demand goes down, such that they can now only charge $8 per pair, should they continue production in the short run?
a. No because price has fallen
b. Yes because price is still higher than marginal costs
c. No because price is lower than average cost
d. Yes because price is higher than marginal costs
b
Economics
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Discouraged workers ________ counted as officially unemployed because they ________
A) are; are not working B) are; are still in the labor force C) are not; are not qualified to work D) are not; are not actively seeking work
Economics
A factor that would reduce the ability of the Social Security system to maintain current benefit levels with constant tax rates is
a. rapid real wage growth. b. reduced population growth. c. adoption of a "pay as you go" system. d. a slowdown in inflation.
Economics