Because marginal cost is always ________ in the short run, total variable cost always ________ when output increases.
A) positive; increases
B) positive; decreases
C) negative; increases
D) negative; decreases
A) positive; increases
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The demand for current consumption, as plotted against the interest rate, shifts to the right due to all of the following except
A) a decrease in current taxes. B) a increase in future taxes. C) an increase in current income. D) an increase in future income.
Using the graphical method to demonstrate the break-even point, which of the following statements is NOT true?
a. constant selling price per unit are represented by TR b. constant variable cost per unit is represented by TC c. variable costs increase at a constant rate of VC per unit of output d. below the point where TR and TC intersect, operating profits are realized e. all of these are true
To counteract steep declines in the birth rate, some countries have offered stipends to pregnant women and subsidies for parents who have a second child. These financial supports are examples of ______.
a. factor payments b. opportunity costs c. positive incentives d. human capital
The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can
A. only choose the desired output, while a competitive firm can control only price. B. control the position of its demand schedule, but a competitive firm cannot. C. control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output. D. only choose the desired price, while a competitive firm can control only output.