From 2015 to 2016, the overall price level rose from 200 to 220. Over this same period, tuition rates at the local community college rose from $100 to $115 per credit hour. What can be concluded from the rise in tuition relative to overall inflation?
a) Tuition rates increased at the same rate as inflation.
b) Tuition rates increased at a slower rate than inflation.
c) Tuition rates increased at a faster rate than inflation.
d) Tuition rates and inflation cannot be compared with the numbers given.
Ans: c) Tuition rates increased at a faster rate than inflation.
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Refer to Table 8.1. That the firm is perfectly competitive is evident from its
A) increasing marginal cost. B) increasing total cost. C) zero economic profits. D) constant marginal revenue. E) absence of marginal values at Q = 0.
In the short run, in a perfectly competitive market, a firm will shut down if
A) P < AVC for all levels of output. B) P < ATC for all levels of output. C) ATC > P > AVC for all levels of output. D) P > AFC for all levels of output.