By Looking at the Full Set of Short-Run Cost Curves

question 171

Multiple Choice

By looking at the full set of short-run cost curves for a firm,we can determine

• A) the profit-maximizing level of output.
• B) the optimal number of employees to hire.
• C) what will happen if the firm increases its capital.
• D) the level of output with the cost-minimizing level of output.
• E) what will happen if the firm decreases its capital.

---

Definitions:

Unionists

Individuals or members of a labor union representing workers' interests.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Efficiency

The ratio of useful output to total input, referring to the effective use of resources without waste.

Skill-Based Pay

A compensation system that establishes pay levels based on the skills or qualifications an employee possesses, rather than the job position alone.