Answer the following statement(s) true (T) or false (F)
1. In long-run equilibrium, perfectly competitive firms make zero economic profits.
2. In a constant-cost industry, cost curves do not change as output changes.
3. In an increasing-cost industry, cost curves decrease as industry output increases.
4. External diseconomies of scale involve factors that are mostly within the firm’s control.
5. A decreasing-cost industry is one where input prices fall as industry output rises.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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Which of the following statements about the distribution of physicians among specialties is true in the United States?
a. The majority of physicians specialize in general/family practice. b. There are twice as many generalists as there are specialists. c. There are twice as many specialists as there are generalists. d. The specialty distribution in the U.S. is similar to that of the rest of the world. e. None of the above.
The number of unskilled workers employed before and after a change in the minimum wage is found to be the same. This means
A) the minimum wage change did not affect the unskilled labor market. B) nothing, unless we also know that the number of hours worked by each worker has not changed. C) the minimum wage could be below the equilibrium wage for unskilled labor. D) either b or c E) none of the above