1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that
2) Camille’s Creations and Julia’s Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can’t keep up with the quantity demanded at that price), then we would expect both Camille’s and Julia’s to:
3) In which of the following industries are economies of scale exhausted at relatively low levels of output?
4) The average cost curves (AVC and ATC) should be minimized
5) If the wage rate increases,
6) The real wage will rise if the nominal wa