One implication of human capital theory is that college graduates should earn substantially less than high school graduates

The figure above shows Mollie's Mugs' costs of producing mugs. The mug market is perfectly competitive

If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is ________ an hour and it incurs an economic loss of ________ an hour. A) $160; $280 B) $8; $14 C) $0; $120 D) $0; $6

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A). If there is a surplus of motorcycles how will the equilibrium point change?

A) The equilibrium point will move from A to E. B) The equilibrium point will move from A to B. C) There will be no change in the equilibrium point. D) The equilibrium point will move from A to C.