Deadweight loss:
A. occurs when the market price is set above the equilibrium price.
B. occurs when the market price is set below the equilibrium price.
C. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity.
D. All of these are true.
D. All of these are true.
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A minimum wage set above the equilibrium wage rate
A) decreases job rationing. B) decreases the natural unemployment rate because fewer workers will become unemployed. C) increases the natural unemployment rate. D) increases the number of workers employed. E) increases the demand for labor.
In the short run, a perfectly competitive ball bearing manufacturer will continue to produce at a loss if
a. it is covering all of its fixed cost b. it is covering all of its variable cost plus part of its fixed cost c. variable cost is less than fixed cost d. fixed cost is zero e. fixed cost is minimized