Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the firm is making an accounting profit of $3000 . What is the firm's fixed costs?

Assume a subsidy to buyers has been enacted in the market in the graph shown. With the subsidy, the buyers buy _____ units and pay _____ for each of them.

A. 100; $46
B. 100; $30
C. 150; $40
D. 150; $24

Sometimes increases in the wage rate will cause individuals to work more hours. It is also the case that this same increase could cause people to work fewer hours. What is happening to cause this variance?

What will be an ideal response?