Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?
A) Points a, b, and c are all obtainable points of production.
B) Points a and b are obtainable points of production.
C) Points b and c are obtainable points of production.
D) Only point b is an obtainable and efficient point of production.
C
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A sunk cost has no effect on supply because it
A) applies to all suppliers. B) can be passed on to consumers. C) cannot be avoided by not supplying. D) cannot be passed on to consumers. E) did not have to be incurred in order for the good to be supplied.
Bob's Baubles, Inc, sells its product for $3 each in a perfectly competitive market. If it increases its workforce from 1,000 to 1,001, its output goes from 615 to 625 per day. Bob should hire the 1,001st worker only if: a. the wage is more than $30 per day. b. the wage is $30 or less per day
c. the wage is less than $10 per day. d. the wage is less than $3 per day.