An increase in the price of raw materials will shift both the MC and the ATC curves upward.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2When white males resist to share responsibilities with members of a minority group, it is termed as:
a. employer prejudice.
b. consumer prejudice
c. worker prejudice.
d. statistical discrimination.
e. occupational segregation.
QUESTION 3Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____.
a. 2
b. 20
c. 10
d. 0.5
e. 0.2
QUESTION 4Diseconomies of scale are present when the long run average total cost of production declines as output expands
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Which of the following statements about employer prejudice is true?
a. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.
b. Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly.
c. Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices.
d. Legislation has ended employer prejudice in the United States.
e. Employer prejudice occurs only in low-paying jobs.
QUESTION 6If the price elasticity of supply is 0.75, it would imply that a _____.
a. a 100 percent increase in price would increase the quantity supplied by 75 percent
b. doubling of the price would increase the quantity supplied by 175 percent
c. 50 percent increase in price would increase the quantity supplied by 25 percent
d. 75 percent increase in price would increase the quantity supplied by 100 percent
e. 120 percent increase in price would increase the quantity supplied by 90 percent
QUESTION 7If a firm experiences economies of scale, the average total cost of production increases as output expands.
a. True
b. False
Indicate whether the statement is true or false
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