A firm in a perfectly competitive industry will expand output as long as:
a. marginal revenue is less than average revenue.
b. marginal cost is less than marginal revenue
c. marginal cost is less than average total cost.
d. marginal revenue is less than average total cost.
b
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The slope of the utility of wealth curve of a risk-averse person
A) increases as wealth increases. B) decreases as wealth increases. C) is constant. D) is negative.
Unions support minimum wage laws, because
A) union workers are typically paid the minimum wage. B) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing high-skilled union labor and, hence, increases the demand for union labor. C) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing low-skilled labor and, hence, increases the demand for union labor. D) an increase in the minimum wage paid to low-skilled labor causes the supply curve of low-skilled labor to shift leftward and, hence, increases the demand for union labor.