If the Number Employed Increases While the Number Unemployed Does

question 2

Multiple Choice

If the number employed increases while the number unemployed does not change, the unemployment rate:

• A)will increase.
• B)will decrease.
• C)will not change.
• D)may either increase or decrease.

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Definitions:

ATC

Stands for Average Total Cost, which is the total cost per unit of output produced by a firm.

Marginal Cost

Marginal cost is the increase or decrease in the total cost of a production run for making one additional unit of an item.

Marginal Revenue

The additional revenue that a business gains from selling one more unit of a product or service.

Average Total Cost

The total cost of producing a certain quantity of output divided by that quantity, indicating the per unit production cost.