If a firm cannot earn profits in the short run, it will shut down
Indicate whether the statement is true or false
False. A firm will operate at a loss if the loss incurred from production is less than the loss incurred from shutting down. Even if the firm shuts down, it still must pay its fixed costs because, in the short run, going out of business is not an option.
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Refer to Figure 11-1. The marginal product of the 7th worker is
A) 66. B) 9.43. C) 2. D) -2.
All of the following are true regarding the current status of labor unions EXCEPT
A) organized labor's heyday occurred from the 1940s through the 1970s. B) part of the explanation for the decline in union membership has to do with the shift away from manufacturing. C) the deregulation of certain industries has also contributed to a decline in unionism. D) recent labor laws have diminished worker's rights.