Economies of scale means
a. average total cost rises as firm size and output increase
b. average total cost falls as firm size and output increase
c. small firms have a cost advantage over large firms
d. monopolistically competitive firms charge less than a monopoly
e. a monopoly makes more economic profit than a perfectly competitive firm
B
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Marcia is a white 23-year-old female, and Joan is a black 23-year-old female. Both Marcia and Joan were economics majors, and they graduated from the same college in the same year with the same GPA. Marcia and Joan both got identical jobs at a brokerage firm after graduating from college. They both work equally hard. Marcia earns $38,000 a year, and Joan earns $30,000 a year. Select the best
explanation for this wage difference. a. Marcia has less human capital than Joan. b. Marcia receives a compensating wage differential that Joan does not. c. Joan has been discriminated against because she is black. d. Marcia has been discriminated against because she is white.
Of all the categories of unemployment, most unemployed persons fall into the category of
A) reentrant. B) new entrant. C) job leaver. D) job loser. E) none of the above