Question: True or False questions. Explain Why. Consider the problem of deriving labor supply from a person's choice between consumption good and leisure. If leisure is

True or False questions. Explain Why.

  • Consider the problem of deriving labor supply from a person's choice between consumption good and leisure. If leisure is normal good, then labor supply will always decrease as wage increases.
  • Average cost cannot rise while marginal costs are declining.
  • When the market demand is completely elastic, a monopolistic firm does not incur any dead weight lost.

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