Which Statement Represents a Microeconomic Issue

question 261

Multiple Choice

Which statement represents a microeconomic issue?

• A) The unemployment rate fell by 2% last year.
• B) Businesses in the United States experienced a decrease in revenues of 5% last month due to the recession.
• C) About 15% of teachers were laid off last week.
• D) GDP increased by 6% last quarter.

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Definitions:

Efficient Scale

The level of production that minimizes the average total cost of producing a good or service. It represents the most cost-effective point of operation for a business.

Maximum Profit

The highest possible profit a firm can achieve when it has optimized its production and sales, given the constraints of the market.

Long-Run Adjustment

The process through which inputs and outputs fully adjust to changes in the market, considering all potential variable and fixed costs.

Zero Profit

A situation where a firm's total revenue is exactly equal to its total costs, resulting in no net profit.