As a firm hires more labor in the short run, the
A) level of total product stays constant.
B) output per worker rises.
C) extra output of an additional worker may rise at first, but eventually must fall.
D) costs of production are increasing at a fixed rate per unit of output.
Answer: C
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Tele-Com, Inc, the nation's largest cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the
a. demand curve for the Disney Channel shifted to the right. b. supply curve of the Disney Channel shifted to the left. c. demand for the Disney Channel is elastic in this price range. d. demand for the Disney Channel is inelastic in this price range.
Refer to the information provided in Figure 8.3 below to answer the question(s) that follow. 
Figure 8.3
Refer to Figure 8.3. If the total fixed cost is $50, then average total cost of producing 10 basketballs is
A. $3. B. $5. C. $8. D. $80.