The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the deadweight loss?

Average total cost is equal to

A) average fixed cost + average variable cost. B) total cost ÷ quantity. C) the change in total cost when output changes by one unit. D) Answers A and B are correct. E) Answers A and C are correct.

Answer the following questions true (T) or false (F)

1. The producer's supply response under a cobweb adjustment response is based on the previous period price. 2. When firms cannot alter the price they face in the market, they are said to be price takers. 3. An outward shift in the demand curve in a perfectly competitive market will result in an increase in supply and make the demand curve more inelastic.