Suppose that in the short run, capital is fixed and labor is variable. True or False: If the price of labor goes up, the firm's (short-run) average cost, average variable cost, and marginal cost curves will all shift upward.
Answer to relevant QuestionsTrue or False: If a law were passed requiring all cars sold in the United States to get at least 40 miles per gallon of gasoline, then Americans would surely use less gasoline.a. Suppose in problem that a sales tax of $2 per pound is imposed on catnip. What is the new market price of catnip? What price do demanders actually pay? What is the new equilibrium quantity?b. Suppose instead that an ...True or False: A wise entrepreneur will minimize costs for a given output rather than maximize output for a given cost.For a good supplied by a monopolist, how does a sales tax of $1 per item affect the marginal revenue curve?John bought a refrigerator and sold it 3 years later for exactly what he paid for it. True or False: It cost John nothing to have the use of the refrigerator for 3 years.
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