Exhibit 8-5 A firm's MR and MC curves
In Exhibit 8-5, a firm is currently producing 40 units of output. What would you advise this firm to do?
A. Shut down.
B. Increase output.
C. Decrease price.
D. Decrease output.
Answer: B
Economics
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Which of the following is likely to lead to a right shift in the demand curve for labor in the coffee producing industry?
A) A decrease in the price of tea B) An increase in the demand for tea C) A decrease in the demand for coffee D) An increase in the demand for coffee
Economics
If steel workers obtain a substantial wage increase, employment in the steel industry will be most likely to fall if
a. the demand curve for steel is highly inelastic. b. the demand curve for steel is highly elastic. c. the demand curve for steel workers is highly inelastic. d. there are no good substitutes for steel.
Economics