A firm earning economic losses should operate in the short run as long as
A) the price per unit sold is greater than the average fixed cost per unit produced.
B) the price per unit sold is greater than the average variable cost per unit produced.
C) marginal revenue is at least the price per unit sold.
D) the price per unit sold is equal to or greater than the marginal cost of production.
Answer: B
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How would each of the following changes affect the steady-state values of the capital—labor ratio, output per worker, and consumption per worker? (a) A change in the composition of the capital stock raises the depreciation rate
(b) A change in social mores lowers the population growth rate. (c) Government tax policies change to encourage a higher saving rate. (d) A supply shock reduces productivity sharply.
In 2009, which of the following countries had the lowest average unemployment rates?
a. Canada b. France c. Italy d. Germany e. United States