Other Things Being Equal,the Demand Curve for Low-Skilled Workers ________

question 131

Multiple Choice

Other things being equal,the demand curve for low-skilled workers ________ the demand curve for high-skilled workers.

• A) lies below
• B) lies above
• C) is the same as
• D) is not comparable to
• E) at high wages lies below and at low wages lies above

---

Definitions:

MC = ATC

The condition where marginal cost equals average total cost, often used to identify the point of minimum average cost in the short run.

Zero Profits

A situation where a company's total revenues equal its total costs, meaning it is breaking even and not generating any profit.

P = MC

An equation that states that the price (P) of a product is equal to its marginal cost (MC), indicating the point at which the production of one more unit of a good or service is exactly covered by the sale price, often used in the context of perfect competition markets.

MC > ATC

Denotes a situation in which the marginal cost of producing an additional unit of a good is greater than the average total cost, implying that producing more of the good will increase the per unit cost.