Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output.
B) decrease output.
C) continue to produce its current output.
D) shut down.
Answer: C
Economics
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Suppose TC = 10 + (0.1 ? q2). If there are 100 identical firms in the market, the market supply curve is
A) Q = 1000 ? p. B) Q = 500 ? p. C) Q = 100 ? p. D) Q = 10.
Economics
The official measure of unemployment may underestimate actual unemployment because
a. people may lie when reporting they are looking for jobs b. the treatment of involuntary part-time workers and discouraged workers is misleading c. the population sample employed by the Labor Department is too small to be representative d. some individuals who should be receiving unemployment benefits do not receive them e. individuals who are unable to work are not included
Economics