Suppose you are the owner of a softball team and you are hiring laborers (players). Suppose also that not all players are equally talented, but that union rules require that they all receive the same salary. If you measure output by the number of runs scored in a season, your total variable cost curve will take what shape, and why?
a. U-shaped because softball teams like this one are no different from other businesses
b. U-shaped because even though salaries are identical, some players are better and will score more runs
c. increasing but at different rates because there are only so many times players can come to bat
d. increasing but at different rates because even though salaries are identical, some players are better and will score more runs
e. increasing at a constant rate because union rules require uniform salaries for players
D
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If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve, then ________ occurs
A) leftward; economic growth B) leftward; inflation C) rightward; economic growth D) rightward; inflation
The government of Silverado raises revenue to operate the city's hospital, open to all residents, through a general income tax paid by its residents. This method of raising revenue is consistent with the benefits-received principle
Indicate whether the statement is true or false