If marginal cost is above average total cost, average total cost will
A. decrease.
B. remain constant.
C. increase.
D. be minimized.
Answer: C
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When an input represents a larger proportion of a firm's total costs, then
A) demand for the input will tends to be less elastic. B) the input demand will not vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) demand for the input will tends to be more elastic.
Which of the following is not a typical goal of bureaucrats?
a. increasing the size of their bureaus b. gaining prestige c. increasing the size of their staffs d. increasing their bureaus' budgets e. achieving greater efficiency
The discount rate is the interest rate
a. commercial banks charge their low-risk customers for a loan. b. savings and loan associations pay for using savings deposit funds. c. the U.S. Treasury pays individuals who buy Treasury bonds in denominations of $10,000 or more. d. the Federal Reserve charges banking institutions for borrowing its funds.
If Sean sells Susan a DVD player for $30,
A) both Sean and Susan will gain from this transaction. B) the well-being of both parties will be unchanged. C) Sean will gain from the transaction, but Susan will lose. D) Susan will gain from the transaction, but Sean will lose.