Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar falls from $45 to $35, the market quantity demanded would

All else constant, an increase in productivity has the effect of causing:

A) the marginal product of labor to increase and no effect on the average product of labor. B) the average product of labor to increase and no effect on the marginal product of labor. C) the marginal product of labor to increase and the average product of labor to decrease. D) both the marginal and average product of labor to increase.

For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?

a. In the short run, the firm will shut down if the price of its product is $11. b. In the long run, the firm will shut down if the price of its product is $14. c. If the price of its product is $12, then the firm's loss if it produces 200 units of output is the same as its loss if it shuts down. d. All of the above are correct.