If a firm stops production, then its:

A. variable costs decrease to zero.
B. total costs decrease.
C. fixed costs stay the same.
D. All of these are true.

Answer: D

Economics

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If 10 workers will be hired by a firm at a wage rate of $15 per hour, but the 11th worker will be hired only if the wage rate falls to $14 per hour, then the marginal wage of the 11th worker is

A. $14 per hour. B. -$1 per hour. C. $154 per hour. D. $4 per hour.

Economics

If a cartel is successful

A. the firms will act like a monopoly. B. the firms will lose profits in a perfectly competitive market. C. the consumers will pay lower prices. D. the consumers will have more goods and services to choose from.

Economics