Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table.Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 Should Ben shut down?
A. Yes, because he cannot earn enough revenue to cover his variable cost.
B. No, because his economic profit is positive.
C. Yes, because his economic profit is negative.
D. No, because he can earn enough revenue to cover his variable cost.
Answer: D
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Frictional unemployment would increase when
A) migrant workers are unemployed after harvest season. B) the number of individuals who quit one job to find another increases. C) discouraged workers drop out of the work force. D) workers are replaced by machines in production.
Over the last 50 years, has the ratio of household production to gross domestic product in the United States increased or decreased? Consider the effect of the increased number of women working outside the home, and the effect of advances in technology
in household production such as microwaves, coffee makers, power tools, etc. What will be an ideal response?