Use the Table Below to Answer the Following Questions

question 65

Multiple Choice

Use the table below to answer the following questions.
Table 6.2.1
-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City.Suppose the Genoa City Council sets a minimum wage of $14 per hour.Teenage unemployment is ________ hours a week.

• A)800
• B)600
• C)400
• D)200
• E)zero

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of any change in a company's production volume.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out.

Average Variable Costs

represent the variable costs (costs that change with output level) per unit of output, calculated by dividing the total variable costs by the quantity of output produced.