In the short run, marginal cost is minimized when
A) MPL is maximized.
B) MPL equals zero.
C) APL is maximized.
D) APL equals zero.
A
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At a certain level of production, the average total cost faced by a monopolist is $6 and the marginal cost faced by the monopolist is $4
If the government decides to regulate the market by setting the price at the efficient price, the good will be sold at a price of: A) $2 per unit. B) $4 per unit. C) $6 per unit. D) $10 per unit.
When two variables have an inverse relationship, the slope is
A) negative. B) positive. C) infinity. D) zero.
If you were to behave according to the rational choice model when confronted with a loss of $25 on the same day in which you receive an unexpected gift of $25 you would
A. value the gift of $25 more than the loss of $25. B. value the loss of $25 more heavily than the gift of $25. C. see the two events as exactly offsetting and thereby of no consequence in your overall welfare. D. discount the loss and value the gain so that you feel you have gained welfare.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.