In the above figure, the relationship between income and expenditures is

A shoe manufacturer is producing at a point where its marginal costs are $5 and its fixed costs are $5000 . At the current price of $10 it is producing 500 pairs. If the demand goes down, such that they can now only charge $8 per pair, should they continue production in the short run?

a. No because price has fallen b. Yes because price is still higher than marginal costs c. No because price is lower than average cost d. Yes because price is higher than marginal costs

Union membership in the United States has fallen compared to what it was in the 1950s

a. True b. False Indicate whether the statement is true or false